A young Nigerian woman has ignited a fiery debate on social media after sharing a disturbing experience with Value Added Tax (VAT) charges at a retail store in Ikeja, Lagos. Her viral video comes amid ongoing public discourse surrounding the implementation of Nigeria's new tax reforms.
Shocking VAT Demands on Multi-Million Naira Purchases
The TikTok user, identified as @rhitta_nelson, narrated her visit to a store in the bustling Ikeja area. She observed a transaction where a man who purchased goods worth ₦3 million was asked to pay an additional sum of nearly ₦250,000 to ₦300,000 specifically for VAT. This was separate from the cost of the items themselves.
She further reported witnessing another customer, a woman who bought goods valued at over ₦2 million, being charged approximately ₦200,000 to ₦250,000 as VAT. The lady expressed her confusion and alarm at the scale of these charges, directly questioning the government's role in the matter.
Personal Encounter and a Plea for Clarification
Sharing her own experience, @rhitta_nelson revealed that she went to the same store to buy an item worth ₦400,000. Upon offering to pay ₦300,000 in cash and transfer the remaining ₦100,000, she was informed that VAT would still apply to the portion being transferred.
In her emotional appeal, she cried out, "Please, I’m calling on the government. Is this what the government was talking about?" She sought public education on the true meaning of VAT and tax, questioning whether consumers are expected to pay both VAT at point of sale and their annual personal income taxes.
Public Reactions and Expert Insights on VAT Compliance
The video triggered a flood of reactions from Nigerians, offering both criticism and clarification:
- One user, Druglaw, explained the chain reaction: "Government will charge them, so they have to charge you, they won't pay government from their capital."
- Kitchen Equipment Lagos advised consumers: "Don't panic if they ask you to pay for VAT. Ask them to show you or tell you their VAT number... Anybody collecting VAT without a VAT number can be imprisoned."
- DevTee noted: "VAT is not new... but there are criteria a company must meet before they could charge for VAT and there are certain items/products that are exempted."
- Rusterduster clarified the rate: "VAT is 7.5% and is not new. You’re still expected to pay your Personal income tax at the end of the year."
This public outcry occurs against the backdrop of explanations provided by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who has been tasked with clarifying the nuances of the new tax policy to Nigerians.
The incident highlights the urgent need for widespread taxpayer education and transparency in the application of the new tax law, as confusion and allegations of overcharging threaten to erode public trust in the reform process.
