By Chijioke Okoronkwo/Ismaila Chafe

Abuja, March 11, 2020 (NAN) The Federal Executive Council (FEC) has resolved that Value-Added Tax (VAT) on contracts signed earlier than Feb.1 remains 5 per cent.

Malam Garba Shehu, Senior Special Assistant, Media and Publicity to the President, briefed State House correspondents after the FEC meeting presided over by President Muhammadu Buhari on Wednesday at the Presidential Villa, Abuja.

Shehu gave an insight on the report of cabinet committee on the effective date of the commencement of the 7.5 per cent VAT on government contracts.

“By law, the new VAT came into effect first of February; government had worried about the implication of this on contracts that had been issued earlier than this year.

“Some of the contracts that are being handled by various ministries, particularly Ministry of Works, for instance, are coming from many years back;  so should the VAT on payments on such contracts be 7.5 per cent or 5 per cent as earlier signed.

“A final decision was reached today; and this is that new contracts that are signed from Feb.1 going forward will attract 7.5 per cent VAT.

“Contracts earlier than Feb. 1 signed on 5 per cent VAT will remain at 5 per cent; so there is no more confusion on this matter,’’ he said.

The FEC, also  on Wednesday, approved N13.9billion for the purchase of insecticides for pest control in states affected by quelea birds.

The Minister of Agriculture and Rural Development, Alhaji Sabo Nanono, who disclosed this when he addressed State House correspondents on the outcome of the meeting of the Council,  said that the approval also covers purchase of drugs for the treatment of animal diseases like rabies.

“We had one memorandum from the Federal Ministry of Agriculture and that was on pest control, animal diseases like rabies, lungs and liver diseases as well as Quelea birds, especially in the Northeastern part of the country.

“There are 12 frontline states that are being affected by Quelea birds, grasshoppers and those that have been pestering us.

“The prevalence of rabies in the country has risen quite substantially, in fact in some cases we have recorded some deaths.

“The Federal Government has taken serious look at it and has approved intervention fund of about N13.9 billion for this,’’ he said.

The Minister, who also gave his ministry’s scorecard to the Council, revealed that the federal government would recruit 75,000 extension workers in the next two years to boost agricultural activities across the country.