Senate Passes Bill to increase VAT to 2nd Reading without Providing details to lawmakers
Senate on Thursday passed bill seeking to raise value added tax (VAT) to 7.5% from 5% to second reading without providing details of the bill to Senators
The bill entitled: ‘Nigeria tax and fiscal law, 2019’, is sponsored by Yahaya Abdullahi, senate majority leader.
But, after the leader of the Senate lead debate on the bill, some senators raised point order complaining that they are not aware of what proposed legislation entails.
Both Senator, Binos Yaroe and Senator Betty Apiaf raised point of order on the matter, but Senate President, Senator Ahmad Lawan ruled the Senators out of order.
Speaking earlier on the bill, the senate leader said the bill is seeking five objectives.
He said,“The bill has five strategic objectives, the first one is to promote fiscal equity by mitigating instances of regressive taxation. The second one is to reform domestic tax laws to align with global best practices.
“The third is to introduce tax incentives for investment in infrastructure. The fourth objective is to support ongoing ease of doing business reforms and the fifth objective is to raise revenues for government including proposal to increase the value added tax (VAT) from 5% to 7.5%.”
He added that the bill when passed will amend the 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.