Sanitary pads are among the 20 basic food items in the Finance Act 2019 exempted from the new 7.5% Valued Added Tax, VAT expected to take effect from February 1, this year.
President Muhammadu Buhari had penultimate week signed the Finance Act to improve the revenue base of the country.
The new law which has generated a lot of controversy according to the government will promote fiscal equity and support MSMES.
A statement from the office of the Vice President read, “In a bid to ensure that the cost of living does not rise for Nigerians because of the changes in the VAT, several basic food items, locally manufactured sanitary towels, pads and tuition relating to nursery, primary, secondary and tertiary education have been added to the exemption list of goods and services on the VAT under the Finance Bill 2019, signed by President Buhari last week, on January 13, 2020.
“Amongst other benefits, the law will consolidate efforts already made in creating the enabling environment for improved private sector participation and contribution to the economy as well as boost states’ revenues.”
Recall that President Buhari had said that,” “the Finance Bill will support the funding and implementation of the 2020 Budget. We shall sustain this tradition by ensuring that subsequent budgets are also accompanied by a Finance Bill.”
The Finance Bill, 2019 was submitted to the National Assembly by President Buhari alongside the 2020 Appropriation Bill and signed into law by the President on January 13, 2020.