Ex-CBN director lauds FG’s plan to charge VAT on online transactions

Dr Titus Okunronmu, a former Director, Budgetary Department, Central Bank of Nigeria, has commended the Federal Government for its plan to collect Value Added Taxes (VAT) on online Business Transactions.

Okunronmu gave the commendation in an interview with News Agency of Nigeria (NAN) in Ota, Ogun, on Monday.

He spoke against the backdrop of Mr Tunde Fowler, the Chairman, Federal Inland Revenue Services,’ disclosure in London on Friday that Federal Government would soon start collection of VAT on online business transactions.

The former CBN director noted that the decision was a right step in the right direction that would help to generate additional revenue for the country.

‘‘For the fact that people do manual online transactions does not mean they should not pay VAT to the Federal Government,’’ he said.

He called on the Federal Government to ensure that the VAT should not be more than five per cent.

Okunronmu also advised Federal Government to look for other means of generating additional revenues to boost the nation’s Gross Domestic Product. (NAN)