– President Muhammadu Buhari has given a breakdown of how the revenue generated from the VAT increment will be used
– President Buhari said that 85% of the generated funds will be given to state and local governments
– The president also revealed that the revenue will be used to fund health, education and infrastructure
As he presented the 2020 budget at the National Assembly on Tuesday, October 8, President Muhammadu gave a breakdown of how the revenue from the increased Value Added Tax (VAT) will be spent.
Speaking to lawmakers at the NASS chamber in Abuja, President Buhari said that the generated funds will go to state and local governments in the country, Premium Times reports.
He added that 85% of the revenue will be used to fund healthcare, education, infrastructure throughout the country for the general good of Nigerians.
President Buhari said: “As the states and local governments are allocated 85 per cent of all VAT revenues, we expect to see greater quality and efficiency in their spending in these areas as well.
” Meanwhile, Equitynews.ng reported that the president had said that the Finance Bill 2019 he forwarded to the National Assembly would help state government increase VAT from 5% to 7.5%.
President Muhammadu Buhari explained that the 2020 Appropriation Bill is based on this new VAT rate.