The Federal government has promised an increase in the Value Added Tax VAT from five per cent to seven point two per cent.
Minister of Finance, budget and National planning Zainab Ahmed disclosed to third journalists after today's maiden cabinet meeting that was presided over by President Muhammadu Buhari.
Statehouse correspondent Correspondent Nnabuchi Okey Nnabuchi reports that the increase is expected to take off after an amendment to the existing VAT act.
It's coming three weeks after the ministers were sworn into office.
Wednesday's council meeting presents an opportunity for the ministers to exchange ideas on how to drive the government's policies.
President Muhammadu Buhari sets the tone for the first meeting with a reminder of his administration's next level agenda and the huge expectations from Nigerians.
One of the key decisions reached was the need to increase payable tax to increase revenue in order to sustain governments policies at the federal, state and local government level.
While she hailed the administration for growth in the economy, the minister also gave out the key parameters of the 2020-2022 medium expenditure frameworks upon which 2020 is predicated.
She said council approved ten point zero seven trillion Naira as the proposed budget for 2020 fiscal year, giving a breakdown of the 2019 budget performance which indicates a one hundred per cent recurrent expenditure, fifty-eight per cent of revenue generation, with only three hundred billion Naira so far released for capital expenditure.
Council also earmarked a total of N182.68 billion for the expansion of Lagos-Badagry expressway with extension to Benin Border and fourteen other roads across the country as well as a revised estimate for both the Itakpe- Warri and Lagos Ibadan rail lines.
With these decisions, the Buhari second term administration is set to go.
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