Bill to increase VAT to 7.5% passes third reading

The bill seeking to raise Value Added Tax (VAT) to 7.5 percent from 5 % has passed third reading on the floor of the Senate

The bill ‘Finance Bill’ submitted to the senate by President Muhammadu Buhari, at the joint session of the National Assembly on October 14, 2019.

The bill was passed after consideration of report of the Committee on Finance, which was read clause by clause at plenary on Thursday.

Chairman of the Committee, Senator Olamilekan Adeola, said the Bill specifically seeks to amend Nigeria’s tax provisions and make them more responsive to the tax policies of the Federal Government, among other things.

He added that the amendment and passage of the Finance Bill would enhance the implementation and effectiveness of government’s tax policies.

During the clause – by – clause consideration of the bill, Senate Minority leader, Senator Abaribe Enyinnya and Senator Gabriel Suswan rejected the VAT increase from 5 per cent to 7.5 per cent, saying it will bring hardship to Nigerians.

President of the Senate, Ahmad Lawan, said the bill’s passage by the Senate was not partisan but purely intended to ensure that we National Assembly streamline the tax system in Nigeria and get revenue for government to provide services and infrastructure to the citizens of this country.

The bill seek to amend Company tax amendment act Value Added Tax amendment Bill, Customs and Excise Tariff amendment Bill, Personal Income Tax Amendment Bill Tax, Capital Gains Tax amendment Bill, Stamp Duty Tax amendment Bill and Petroleum Profit 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..