The Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has say the plan to increase Value Added Tax (VAT) from five percent to 7.5 percent is in the right direction to raise country’s revenue.
The CBN Governor, Emefiele stated this while fielding questions from journalists after the Monetary Policy Committee meeting held in Abuja.
Emefiele said the government has responsibility to fend for its citizenry by providing basic infrastructure like roads, electricity and hospitals among others.
Emefiele explained that the government had only two ways to fund such projects, either by raising revenue or through loan collection.
According to Emefiele, the present government has been criticised by some people for high rate of debt incurred.
“Government unfortunately has no option, if it does not borrow, it must raise revenue and you all agree with me that it has obligations to meet up with.
”The increase of VAT to 7.5 percent is low compare to other countries, in fact, with this increase, Nigeria has the lowest in the world.
“If the government can meet its obligation through this increment, it should be supported,” Emefiele said.
The CBN Governor, Emefiele appealed to Nigerians to show understanding and support government’s policies.
