How does this affect you and I?
The President of the Federal Republic of Nigeria, President Muhammadu Buhari, has signed the 2019 finance bill. He did this yesterday and announced it on his verified Twitter account officially.
Among other things, the bill aims to increase the value-added tax (VAT) from 5% to 7.5%. According to his tweet, he revealed that the bill was introduced along with the 2020 budget in order to ‘reform Nigeria’s tax laws’ and align with global practices. He further asserted that it would support MSMEs in line with the Ease of Doing Business Reforms, incentivize investments in infrastructure and capital markets as well as raise government revenues.
One major effect this new law will have on people is a decrease in consumption and purchasing power due to inflated costs of goods and services. In order to ensure the maintenance and/or increase in your purchasing power, consider the following tips:
- Make 2020 different. Get your finances in order
- Read up our weekly financial management tips
- Prepare your mind
- Get one or more side hustles
- Diversify your investments
- Read No 1 again. Set financial goals for the year
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