Modupe Gbadeyanka
By Modupe Gbadeyanka
The bill to increase the Value Added Tax (VAT) from 5 percent to 7.5 percent from January 2020 has passed second reading at the House of Representatives.
The proposal was tucked inside the Finance Bill presented to the joint session of the National Assembly by President Muhammadu Buhari when he submitted the 2020 Appropriation Bill in October 2019.
Business Post reports that the document has seven components and during plenary on Wednesday, the lawmakers said in order to increase revenue generated by government, the finance bill should be passed and signed into law.
The bill seeks to amend the Companies Income Tax Act, Value Added Tax Act, Customs and Excise Tariff (Consolidation) Act, Personal Income Tax Act, Capital Gains Tax Act, Stamp Duties Act and Petroleum Profit Tax Act.
According to President Buhari, the main aims of the bill are to promote fiscal equity, reform domestic tax laws, introduce tax incentives for investments in infrastructure and capital markets, support small businesses, and raise revenues for the government.
When the bill was put to debate yesterday, the lawmakers commended government for the initiative, saying it would help in meeting its obligations to the Nigerian people.
After deliberations, Speaker of the House of Representatives, Mr Femi Gbajabiamila, who presided over plenary, referred the bill to the House Committee on Finance for further legislative action, one of which is public hearing, before a final report is laid to the lower chamber of the parliament.
