Nigerians groaning over the harsh economic condition should brace up for additional burden as Electricity Distribution Companies (Discos) have announced plans to begin the implementation of the new Value Added Tax (TAX) regime as contained in the finance law by February 1.
The Federal Government as part of efforts to shore up Government revenue had in the new finance law, approved an increase in VAT from five per cent to 7. 5 percent. Taking the first bold step is the Eko Electricity Distribution Company which has announced that from February 1, the prices of meters sold to customers under the Meter Asset Provider (MAP) scheme will be reviewed to reflect the increase in VAT recently implemented by the Federal Government.
This was even as he disclosed further that VAT on tariffs have been adjusted to accommodate the new 7.5 per cent rate, and service charges on installment meter payments through MAP will be reviewed to accommodate the new VAT charge.
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