Senate Rejects Clause Moving VAT To Exclusive Legislative List

What the Senate is saying

The Senate during plenary voted on a bill, which aims to ensure an Act to Alter Part I of the Second Schedule to the Constitution of the Federal Republic of Nigeria, 1999 to include Value Added Tax on the Exclusive Legislative List; and for Related Matters.

The Senate in its voting, voted against passing the Value Added Tax into the Exclusive list as the voting turned out to be 41 Nays and 44 Ayes.

What you should know

• Newsone Nigeria understands that states and local government areas collected about 85% of VAT. This comes as the Federal Government is giving more to states in terms of VAT because they are contributing about 60% and retaining only 15%, giving the rest to the states and local governments.
• Newsone recalls that Rivers State Governor, Nyesom Wike, insisted last year, that the state government would go ahead with its move to stop the Federal Government from collecting Value Added Tax (VAT) from the oil-rich state.
• The Nigerian Governors Forum (NGF) had also revealed that it will wait on the Supreme Court’s decision on Value Added Taxes before taking any decision on the matter.
• The NGF had urged the Supreme Court to accelerate its decision so that we have clarity over who should be in charge of Value Added Tax (VAT), whether it is the Federal Inland Revenue Service or the States.