The Lagos Chamber of Commerce and Industry (LCCI) has described the new tax regime of an increase in Value Added Tax (VAT) to 7.5 percent from 5 percent, as capable of putting more pressure on the Nigerian consumer.
Making this observation at a media briefing , in Lagos, recently, the President of the Chamber, Mrs. Toki Mabogunje, stated that though the new tax regime, scheduled to start from February 1, this year, is aimed at generating more revenue for government and making business environment more enabling, it might not help the cause of manufacturers and stakeholders in the real sector of the economy.
According to her, the new tax regime would affect cost of production, impact negatively on profit margin, as well as put the consumers on the edge.
“The new tax regime will affect cost of production and profit margin, with consumers being at the receiving end,” she stated
Mrs. Mabogunje applauded the Central Bank of Nigeria (CBN) for coming up with the Revised Guide to Charges by Banks and other Financial and Non-Financial Institutions, noting that the revised guidelines would go a long way in protecting customers in the sector, as well as enhance financial inclusion.
The LCCI boss also expressed concerns on the rising inflation, since September, 2019, adding that the development was capable of impacting negatively on the welfare of the citizens, since it would weaken the purchasing powers of Nigerians.
She expressed the belief in the ability of government to stem rising consumer prices through increased investment in infrastructure gaps and reduced transportation costs.