The senate has approved the
request by President Muhammadu Buhari to increase value added tax (VAT) from 5
percent to 7.5 percent.
The senate approved the request
after Solomon Olamilekan, chairman of the finance committee, presented a report
on a bill entitled ‘Nigeria tax and fiscal law’.
In September, the federal
executive council (FEC) approved an increase in VAT and sent a bill to the
national assembly for consent.
During the clause-by-clause
consideration of the bill, Enyinnaya Abaribe, senate minority leader, protested
the increase of VAT to 7.5 percent from 5 percent.
The minority leader said the
current VAT rate should be maintained.
“Nigerians have suffered enough,”
he said.
Senate President Ahmad Lawan told
Abaribe that is point was noted, but he did not give any room for an amendment.
After the consideration of the
clauses, Lawan said the federal government will have money to bridge the
infrastructural gap in the country.
“Let me thank you for passing
these seven amendments, largely to ensure that they streamline the tax system
in Nigeria to ensure that we get revenue for government to provide services and
infrastructure to the citizens of this country,” he said.
“This is not only to ensure that
we have credible sources of funding but ensure we have funding for other things
of government. What we will do is engage revenue agency on a quarterly basis.”
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.
The amendments will become law
when they are signed by the president.
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