Value added Tax
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Value added Tax
The Federal Government has announced an increase of VAT from the present 5% to 7.5% in the year 2020.
In as much as the Government is looking at generating additional revenue possibly for increase in Government investment & expenditure on Capital and recurrent projects, she should not be myopic on the implications of such increment on other sections of the economy especially on the assumed exclusions such as Health, Agriculture etc.
If VAT is increased, it affects everything including the excluded areas. For instance, let's look at health: It is said that pharmaceutical and other health related issues are not subjected to VAT what of other requirements that are used in health institutions that are not really described as health related? In the hospital I know very well that inspectors from cooperate bodies expect you to provide Air conditioners, Refrigerator & Televisions in the hospital rooms or your hospital will be disqualified from its retainer-ship. What of Fans; Can one really manage such facility without fans? Are all these not subjected to VAT? What of building projects in such institutions; will cements and other building materials not be affected? Even the general economy the Government refers to, when VAT is increased, if the Government have a project that could have cost 10m Naira, for instance, the prices of materials needed for such project will automatically be skyrocketed thereby tripling the budgeted cost of such project.
Again, let us not forget that electricity bill, which everybody has been complaining of, will equally go up. Are there organizations in this country that don't use electricity?
All these will increase or triple the bills of the final consumer ie the Patients, if a hospital is involved which is you and I.
Please, this issue should be looked into by our legislators otherwise in 2020, "there will be weeping and gnashing of teeth" in our dear country.
In as much as the Government is looking at generating additional revenue possibly for increase in Government investment & expenditure on Capital and recurrent projects, she should not be myopic on the implications of such increment on other sections of the economy especially on the assumed exclusions such as Health, Agriculture etc.
If VAT is increased, it affects everything including the excluded areas. For instance, let's look at health: It is said that pharmaceutical and other health related issues are not subjected to VAT what of other requirements that are used in health institutions that are not really described as health related? In the hospital I know very well that inspectors from cooperate bodies expect you to provide Air conditioners, Refrigerator & Televisions in the hospital rooms or your hospital will be disqualified from its retainer-ship. What of Fans; Can one really manage such facility without fans? Are all these not subjected to VAT? What of building projects in such institutions; will cements and other building materials not be affected? Even the general economy the Government refers to, when VAT is increased, if the Government have a project that could have cost 10m Naira, for instance, the prices of materials needed for such project will automatically be skyrocketed thereby tripling the budgeted cost of such project.
Again, let us not forget that electricity bill, which everybody has been complaining of, will equally go up. Are there organizations in this country that don't use electricity?
All these will increase or triple the bills of the final consumer ie the Patients, if a hospital is involved which is you and I.
Please, this issue should be looked into by our legislators otherwise in 2020, "there will be weeping and gnashing of teeth" in our dear country.
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