The Federal Executive Council meeting on Wednesday approved an increase of Value Added Tax from five per cent to 7.2 per cent, even as N182.68bn has been allocated for various road projects across the country.
This was disclosed by the Minister of State for Works and Housing, Abubakar Aliyu, at the end of FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa.
According to him, the beneficiary states for the roads projects include Lagos, Niger, Kano, Katsina, Edo, Kwara, Taraba, Jigawa, Imo, Abia, Yobe, Anambra and the Federal Capital Territory.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, said that the FEC approved the Medium Term Expenditure Framework 2020 to 2022, which will guide the 2020 Budget.
“The next step is to present the document to the National Assembly for consideration,” she said.
Although, she said that the VAT Act would have to be amended first before the increase comes into effect.