In a bid to raise revenue for the country’s budget, the Nigerian Government is considering a 5% Value Added Tax (VAT) increase early next year, specifically for online purchases of all items, except food and drugs. This new development looks like a jab at the cashless policy that the Government has been trying to encourage.
With all that has been said, this is still in consideration as it might not be adopted. However, if it gets implemented, here are some ways it would most likely affect you.
If successfully introduced, you will be paying extra for the things you buy online. Imagine trying to buy your dream smartphone, only to be asked to pay N10,000 as Value Added Tax. Hmmm…. won ti gbe é ni handicap.
Why pay extra when you can just give them cash for less, right? Well, what that means is that you’ll have to go back to carrying lots of cash in your purse, as you would be tempted to opt for the pay on delivery option most times.
Also, as a result of the increased tax, a lot of E-commerce platforms that do not favour the ‘pay on delivery’ option are very likely to have poor sales, as people would buy less from them. When the business starts making less profit than usual, some workers might just be laid off in a bid to stay afloat. Some of these people could be close friends or family members of yours.
The question that comes to mind each time I remember the proposed 5% VAT on online purchases is, will this be of any real benefit to average Nigerians? Well, let’s hope the needful is done.
Also, find out how an extra zero can affect your life