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Fri, Mar

7.5% VAT Increase: Bill Passed Third Reading

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The bill proposing to increase the Value Added Tax (VAT) from 5% to 7.5% in Nigeria has passed its third reading on the red chamber of the National Assembly.

The bill ‘Finance bill’ submitted to the Senate by President Buhari sometimes on October 14, 2019, while the legislatures were on a joint session.

 

The committee of finance in the Senate after meticulously scrutiny the bill and subsequent consideration by the committee of the whole on Thursday, the bill was passed for the third reading.

 

Senator Olamilekan Adeola, the Chairman of the committee revealed the bill is targeted at reviewing the Nigerian tax provision through making them responsive to conform to reality with policies of the government.

 

Adeola added that embarking on such strategic reforms would not only improve government revenue but will also enhance effectiveness in government policies.

 

During the scrutiny of the bill by the legislatures, Senator Eyinaya Abaribe, the Senate Minority Leader and his counterpart Gabriel Suswan kicked against the VAT increase saying it will further make life unbearable for Nigerians.

 

However, the President of the Senate, Ahmed Lawan opined that the passage of the bill was not partisan but with genuine intention to streamline the government tax system by the National Assembly. This will ensure more infrastructural development for the citizenry.

 

Accordingly, the bill also seeks to amend the company tax amendment act Value Added Tax amendment bill, custom and Exercise Tariff, Personal Income Tax amendment bill, Stamp duty Tax bill, and petroleum tax amendment bill.

 

The finance bill seeks to amend company tax CAP C21 Laws of the Federation of Nigeria 2004, VAT CAP 4 2007, customs and excise tariff act CAP C49 Laws of the federation, personal income tax E8 laws of the federation, capital gains tax act CAP C1 laws of the federation, stock duty act 58 laws of the federation and petroleum profit tax law..

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