Lagosians react as FG puts 5% tax on all online purchases!

Lagos – Mixed reactions have trailed the proposed plan by the Federal Government to slam a five per cent Value Added Tax (VAT) on goods bought online.
Prof Sheriffdeen Tella, a Senior Economist at the Olabisi Onabanjo University, Ago-Iwoye, Ogun, said that the online space was still growing and taxing it now would discourage transactions. Tella urged the government to explore alternative ways of funding the budget. In his opinion, Dr Chijioke Mgbame, Associate Professor, Accountancy Department, University of Benin said that slamming a five per cent VAT on online purchases was not abnormal. Mgbame, however, said that the greatest worry lay on the proper use of tax revenue for developmental purposes. “Nigerians are worried because they do not see the benefit for tax payment.
“Some commodities like food stuff and children clothing should be exempted from tax,’’ Mgbame said. News
The don noted that the structure of VAT was important and the welfare of the citizens should also be considered. Also, Dr Phillip Ujomu, Associate Professor, Department of Philosophy, Federal University, Wukari, noted that the tax regime for online transaction seemed to be a move toward inclusion and accountable e- activity. Ujomu, however, said that an area of concern could be the issue of multiple taxation at the latest local, State and Federal levels. “More so, there seems to be the issue of citizens not easily seeing the positive impact of previous taxes.