VAT hikes’ exemption for public contractors who inked deals before January 2017

The General Directorate of Taxation has decided to absolve public economic contractors who signed public deals before December 31, 2016 from VAT increases as provided for by this year’s finance law, despite a period of more than two months after the law’s coming into force.

Such a decision came after the filing of dozens of complaints on Finance Minister Haji Baba Ammi’s table, from numerous public investors who complained about nagging bureaucratic hurdles which disrupted and even undermined the smooth running of their trading transactions initialed before 1 January 2017.

The Ministry of Finance has thus conveyed a relevant instruction to the Taxation General Directorate to take steps so as to exempt all public contractors who concluded public transactions before January 2017 from VAT hikes, thereby the latter will thus have to pay the necessary tax fee as previously, that is, 17 percent instead of the now-enforced 19 percent.

The relevant instruction, dated March 5th 2017, was signed by the Director of Legislation and Regulation, Mr. Mustapha Zikara, and addressed to senior enterprise managers and heads of regional taxation offices across the country for the sake of its smooth implementation.