Friday, 29 November 2019 06:50

Like senate, house of reps approves VAT increase

Like senate, house of reps approves VAT increase
 

The house of representatives has approved the request by President Muhammadu Buhari to increase value added tax (VAT) from 5 percent to 7.5 percent.

The lower legislative chamber approved the request during Thursday’s plenary session. Buhari sent the finance bill in October.

The senate also passed the bill a week ago amid opposition from some lawmakers.

The finance bill seeks to amend six tax provisions, including that of the Customs and Excise Tariff Act, to encourage local manufacturing.

The various acts covered under the proposed law in addition to the value added tax Act include: personal income tax Act, petroleum profit tax Act, customs and excise tax Act, company income tax Act, stamp Duties Tax Act, and Capital Gains Act.

The federal executive council (FEC) first approved an increase in VAT in September.

Provisions of the 2020 appropriation bill of N10.33 trillion are based on the increase.

Buhari said some of the items which will be exempted from the VAT, in addition to the pharmaceuticals, educational items, and basic commodities already excluded by the VAT act, include brown and white bread, cereals, fish of all kinds, flour and starch meals.

Others are fruits, vegetables, roots (yams etc), herbs. salt, milk, meat and water.

Following approval of the bill by both chambers of the national assembly, the joint committees of the parliament will concur and subsequently send to Buhari for assent.

 

TheCable

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