Nigeria: FEC approves new national tax policy, sets up inter-ministerial taskforce on rising food prices
(Ecofin Agency) - The Federal Executive Council (FEC) has approved a new National Tax Policy will be used as a guideline for operations, help review the Nigeria’s tax system and provide a foundation for future tax legislation and administration.
According to Kemi Adeosun (photo), Minister of Finance, the implementation of the policy, which begins immediately, would bring about a rise in Value Added Tax (VAT) on all luxury goods. She added that the new policy, which is still subjected to the approval of the National Assembly, will help establish an efficient tax system and address the key challenge of low tax contribution to the Gross Domestic Product (GDP), which is at 6%.
Moreover, the FEC, under the directive of Acting President Yemi Osinbajo, also created an inter-ministerial task force to immediately deliberate on measures that are likely to ensure a stable flow of produce to the market and reverse rising prices of food products across the country, the Guardian news reports.