VAT: Tax bill passes second reading in Senate amid controversy

VAT: Tax bill passes second reading in Senate amid controversy

- Bill seeking to increase tax for Nigerians has passed second reading

- Meanwhile, some senators claim they don't know the contents of the bill

- Recall that the Federal Executive Council (FEC) in September approved an increase in VAT which was subsequently transmitted to the Senate

The bill which will raise value added tax (VAT) in the country to 7.5% from 5% has passed second reading at the Senate.

The bill which was sponsored by Yahaya Abdullahi, Senate majority leader, is entitled: ‘Nigeria tax and fiscal law, 2019’.

Recall that the Federal Executive Council (FEC) in September approved an increase in VAT.

Meanwhile, when the Senate majority leader moved the motion and gave his lead paper on the bill, some of the senators claimed they had no knowledge of the contents of the bill.

According to the lawmakers, copies have not been made available to them.

Lawmakers who raised points of orders over the contents of the bill include Binos Yaroe, senator representing Adamawa South, Betty Apiafi, senator representing Rivers West, The Cable reports.

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However, the lawmakers were not favoured by the Senate president, Ahmad Lawan. He said the general principles of the bill will only be debated.

Meanwhile, Abdullahi said the bill has five strategic objectives.

1. Promotion of fiscal equity

2. Reforming domestic tax laws to align with global best practices

3. Introduction of tax incentives for investment in infrastructure.

4. Support of ongoing ease of doing business reforms

5. Raise revenues for government including proposal to increase the value added tax (VAT) from 5% to 7.5%.

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Meanwhile, recall that Legit.ng had reported that as he presented the 2020 budget at the National Assembly on Tuesday, October 8, President Muhammadu gave a breakdown of how the revenue from the increased Value Added Tax (VAT) would be spent.

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Source: Legit.ng

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