The Federal Government has proposed a new law that aims to remove Value Added Tax (VAT) from important products and services to help reduce the financial stress on people.
This law, called “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation,” was created on October 4, 2024, and was shared with Nairametrics.
According to this law, items like baby products, locally made sanitary pads and tampons will not have VAT. Other items without VAT include military equipment, weapons, uniforms for the military, paramilitary, and other security groups.
Also, services like shared passenger transportation, farming tools, diplomatic and educational activities, government permits, land, and financial tools will not have VAT.
The bill suggests raising VAT from 7.5% to 10% by 2025, 12.5% by 2026-2029, and 15% starting from 2030.
