Value added tax. Photo: SOW Professional Services Ltd
Nigerians are increasingly concerned about the impact of Value Added Tax as rising prices and weakening purchasing power continue to strain household finances.
The concerns are especially pronounced among consumers, traders and small business owners, who say rising prices of goods and services are making it harder to meet daily expenses.
VAT is a consumption tax collected at different stages of the production and distribution chain. Although businesses are responsible for collecting and remitting the tax, the cost is ultimately borne by consumers through the prices they pay.
In markets across Lagos and other urban centres, traders say rising operating and restocking costs have forced them to increase prices, further straining consumers.
