Report on Interest

Plan to increase VAT in right direction – CBN gov, Emefiele

By News desk

The Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, has said that the plan to increase Value Added Tax (VAT) from five per cent to 7.5 per cent is in the right direction to raise country’s revenue.

Emefiele said that government had responsibility to fend for every citizenry by providing basic infrastructure like roads, electricity and hospitals among others.

The CBN governor explained that the government had only two ways to fund such projects, which are by raising revenue and through loan collection, adding that the present government has been criticised by some people for high rate of debt incurred.

Emefiele   stated this while fielding  questions from newsmen after the Monetary Policy Committee meeting held in Abuja on Friday.

“Government unfortunately has no option, if it does not borrow, it must raise revenue and you all agree with me that it has obligations to meet up with. The increase of VAT to 7.5 per cent is low compare to other countries, in fact, with this increase, Nigeria has the lowest in the world. If the government can meet its obligation through this increment, it should be supported,” he said.

Emefiele appealed to Nigerians to show understanding and support government’s policies

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