The European Union and Economic Community of West African States’ delegation to Nigeria have said that the Value Added Tax system in Nigeria is below the ideal.
The Head of Cooperation of the Delegation of the EU and ECOWAS to Nigeria, Massimo De Luca, said this on Monday at the 4th session of the Steering Committee of the Support Programme for Fiscal Transition in West Africa held in Abuja.
De Luca blamed the low compliance with VAT in Nigeria on corruption and poor implementation.
He noted that while some companies may be willing to pay their taxes, the current taxation system in the country does not allow them to do so.
Earlier, the Chairman of the Federal Inland Revenue Service, Zacch Adedeji, said that the agency would make the taxation system in the country customer-centric so that, individuals and businesses could pay taxes easily.
He also noted that the FIRS would introduce a one-stop shop for all taxes in the country.
VAT is a consumption tax paid when goods are purchased and services rendered. It is a multi-stage tax. VAT is borne by the final consumer. All goods and services are taxable except those specifically exempted by the VAT Act.
