Name: WETKAS BENJI GODSAVE

Department: Accounting

Mat: FUO/17/ACT/5913

Course title: Taxation

Course code: ACT 306

Question: Explain why education and educational materials are exempted from value tax(VAT)

ANSWER

In Nigeria, the provision of section 23 (1) (c) of companies income tax Act (21), laws of the Federation of
Nigeria (LFN) 2007 as amended (CITA) provides that the profits of any company engaged in ecclesiastical
charitable or educational activities of public character in so far such as profits are not derived from a
trade or business carried on by such company shall be exempted from tax. However, CITA provides for
taxation of positive income (dividend, inerest, rent or royalty) when earned by such educational
instructions.

Nigeria children should continue to be able to enjoy not only gain the basic tools for life and works in
school but also to learn the joy of life:

In Nigeria toady, private educational instructions are thriving at the expense of public educational
instructions. The one time provide primary and secondary are now shadows of themselves. Many are
littered with dilapidated structure and deck of neglect. The uncertain school calendar has also made the
tertiary instructions most unattractive And has increased the number of Nigeria freshman
undergraduate involved in pilgrimages outside the country.

Nigeria literacy rate is 69.1% and has 54% of her citizens between the ages of 15 and 39. Nigeria must
continue to be a learning society develop talents and raise the ambitions of her youths