- Governor Babajide Sanwo-Olu has signed the bill empowering the state to collect value added tax into law
- This was made public on Friday, September 10, through a statement by the commissioner of information and strategy in Lagos
- This new development was aimed at imposing fees and charging VAT on certain goods and services in the state
In what seems like a never ending battle in recent days between governors and the Federal government, The Lagos state Governor, Babajide Sanwo-Olu, has signed into law a bill empowering the state government to collect Value Added Tax (VAT).
Omotoso stated that the governor signed the bill for a law so as to impose and charge VAT on certain goods and services after returning from an official trip in Abuja.
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“The governor signed the ‘bill for a law to impose and charge VAT on certain goods and services’ at about 11:45am today, after returning from an official trip to Abuja.
“By this act, the bill has now become a law.”
The Lagos state government through its official site hinted further that by this act, the bill has now become a law.
Meanwhile, VAT contributes significantly to the total revenue generated by the government, accounting for over 16.2% of the Gross Domestic Product (GDP) in 2019, Daily Trust also reported.
Lagos and Rivers states, which contribute over 70 per cent of the VAT collectibles in the country, have decided to enact a law that will empower them and not FG, to collect VAT in their states.
Why VAT Law will be beneficial to Lagos, Obasa, residents speak reveal
Mudashiru Obasa, the speaker of the Lagos state House of Assembly, on Wednesday, September 9, said the proposed law on Value Added Tax (VAT) would help the state meet more of its developmental goals.
Legit.ng gathered that Obasa said this during a public hearing on a bill for the Lagos state Value Added Tax (VAT) and for other connected purposes.
This was as stakeholders at the hearing commended the Lagos state Assembly and its leadership for their determination to ensure that the bill becomes law.