Accountant-General of the Federation, Mr Ahmed Idris, has revealed that states and local government councils will receive additional funds from February following the implementation of the 7.5 increase in Value Added Tax (VAT).
Idris made the disclosure in Lagos at the sideline of the Federation Account Allocation Committee (FAAC) 2020 Retreat on Wednesday.
He told journalists that “you will see the impact of VAT increase from next month because effectively it took off on Feb. 1 and the states and local governments will definitely get bigger figures in terms of VAT allocation. The Federal Government has 15 per cent, States have 50 per cent and the local governments have 35 per cent.
“All these will be reflected in the succeeding months. I believe as from next month, we will see the impact of the increment of the VAT in the federation revenue,” he said.
He said the Federal Government remained committed to increasing the contribution of the non-oil sector to the nation’s revenue base.
He explained that states are also being encouraged to tap into the vast potential that abound in their respective areas to increase their Internally Generated Revenue (IGR).