Mr. Godwin Emiefele, the Governor of the Central Bank of Nigeria (CBN) has hinted Nigerians on Why the apex bank increased its Value Added Tax (VAT) from 5% to 7.5%, saying the decision was to improve on the countries revenue generation.
Emiefele disclosed this while attending to journalist in Abuja shortly after the Monetary Policy Committee meeting.
NAN quoted the CBN governor to have said the government has the responsibility to take care of every citizenry through the provision of some basic infrastructure/amenities such as roads, electricity, and hospitals among others.
However, the government has only two option of how it should fund such projects, and that should either be through raising the revenue or by borrowing.
According to him, the current administration has received too much backlash from various quarters over its posture on borrowing, therefore it has resolved to look inwards through raising the bar on VAT which the government believes will go a long way.
Emiefele revealed that the increase in VAT to 7.5 percent is still low when compared to other countries, in fact, it is adjudged to be the lowest in the world.
He added if only the government would meet its obligation through this, then we should give all our support as Nigerians to actualise it.
He appealed to Nigerians to show understanding and support the government’s policies.
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