Government has scrapped Value Added Tax (VAT) on some locally-produced items in a bid to support local industry.
Pharmaceuticals and some of the raw materials used in their production will now be exempt from VAT.
Import duty and VAT on inputs for the production of machetes and the production of exercise and text books will also be removed.
This was announced in the budget reading on Wednesday, November 20, 2014 by Finance Minister Seth Terkper.
However, there was bad news for all as a special petroleum tax of 17.5 per cent was imposed. This will be accompanied by strict implementation of the existing price adjustment mechanisms for utility tariffs and fuel prices.
There will also be a special import levy of 1-2 per cent and VAT will now be charged for fee-based financial services.
In addition at 5 per cent flat VAT rate will be imposed on real estate.
Click for the 2015 BUDGET HIGHLIGHTS – 19th Nov 2014