FG Adds Meat, Oil, Other Food Items To Goods Exempted From New VAT

In response to public apprehension over the recently signed finance bill, the federal government has added to the list of goods and services exempted from the 7.5% Value Added Tax (VAT).

According to a statement issued on Sunday from the office of the Vice President by Laolu Akande, basic food items like honey, bread, cereals, cooking oils, culinary herbs, and fish are not to be subjected to the new VAT.

Others include flour and starch, fruits (fresh or dried), live or raw meat and poultry, milk, nuts, pulses, roots, salt, vegetables, water (natural water and table water).

The statement further said that locally manufactured sanitary towels, pads or tampons have also been exempted from the new VAT to change the notion that low-income persons and companies will be marginalized by the new law.

In reducing the burden of taxation on vulnerable segments, and promote equitable taxation, the government added services rendered by microfinance banks and nursery, primary, secondary and tertiary education tuition to the exemption list.

Recall that the Finance Bill 2019 was signed by President Muhammadu Buhari on the 13th January 2020 leading to a raise in VAT from 5% to 7.5%.