President Muhammadu Buhari has signed into law a new bill that seeks to boost government revenue through a rise in the value-added tax rate while at the same time supporting small businesses. Nigeria has been trying to boost tax income as part of efforts to diversify its economy to reduce dependence on sales of crude oil. But raising more money from taxes has proved difficult in a country where most small businesses are not registered. The government has repeatedly said it wants to boost non-oil revenue since oil sales make up 90% of foreign-exchange receipts. Under the finance bill, VAT rates will rise from 5% to 7.5%, which is still one of the lowest rates in the world.
SOURCE: REUTERS AFRICA