Dr Titus Okunrounmu, a financial expert has commended President Muhammadu Buhari for signing the 2020 Finance Bill into Law.
Okunrounmu, a former Director, Budgetary Department, Central Bank of Nigeria (CBN) made the commendation in an interview with News Agency of Nigeria (NAN) in Ota, Ogun, on Tuesday.
NAN reports that Buhari on Monday in Abuja signed the 2020 Finance Bill into Law to support the implementation of 2020 budget.
The expert said that the signing of the Bill into Law was commendable.
According to him, the Federal Government is trying to depart from the old budget cycle of June.
Okunrounmu noted that most countries paid 10 per cent as Value Added Taxe (VAT), while Nigeria still paid less than 10 per cent.
The former CBN Director said that the Federal Government was budgeting deficit to finance the nation’s annual budget.
He said that the nation presently had a deficit budget most likely, and the Federal Government was looking for a way of financing it.
“The Federal Government is seeking for a way of financing deficit of the annual budget because Nigerians will complain if they embark on borrowing to finance the deficit.’’ he said.
Okunrounmu said that the increase of VAT from five per cent to 7.5 per cent would not affect average Nigerians, saying that the VAT was not imposed on such goods like garri, fish and pepper.
“Common people will not suffer from VAT as it is not a compulsory tax if it is not consumed by an individual.
“It is not a mandatory tax that everyone in the economy will pay as the implication is that the more an individual consumed more of particular products or goods like beers, wine, the more the individual would pay,’’ he said.