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The Federal Government has approved a new tax policy for the country at the Federal Executive Council meeting which held yesterday.
Minister for Finance, Mrs. Kemi Adeosun, announced the approval of the new tax policy after the meeting.
She said FG would work with the National Assembly for the amendment of certain tax laws before the commencement of the policy.
“What the committee has shown is that we should look at actually increasing VAT on some luxury items. 

“At five per cent, we have the lowest VAT among our peers and whilst we don’t think VAT should be increased on basic items, if you are going to drink Champagne, for instance, you should pay more.
“Champagne in the UK attracts VAT of 20 per cent, so why should it be five per cent in Nigeria?
“So, they have made recommendations that we should identify some luxury items and increase VAT on those items immediately.
“And I think that is a very valid and sensible suggestion which we are going to talk to the National Assembly about to see how we can implement it.

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