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Economy and Business

Buhari requests specific date for implementation of VAT increment from Senate

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President Muhammadu Buhari has written the National Assembly demanding the specific date for the implementation of the increase in the Value Added Tax (VAT).

This was contained in a letter requesting that the Finance Act, 2019 (Amendment) Bill be considered by the Senate for passage into law.

Recall that the law has been passed but has not been implemented.

One of the amendments sought by the president is that the new law should take effect from February 1.

In the letter read to the lawmakers on Tuesday, Mr Buhari demanded that the VAT be increased from 5% to 7.5%.

This is coming weeks after Nigerians have aired their opinions on the increase in VAT and condemned the move.

Below are exerpts from the letter

Pursuant to Sections 58 and 59 of Constitution of the Federal Republic of Nigeria1999 (as amended), l formally request that the Finance Act, 2019 (Amendment) Bill be considered by the Senate for passage into law.

“This bill seeks to amend the Finance Act, 2019 recently passed by the National Assembly.

“That the administrative effective date for the increase in Value Added Tax from 5% to 7.5% is the 1st of February 2020;

“(ii) That ‘Animal Feeds’ are included in the list of Basic Food Items that are exempt from Value Added Tax; and

“(iii) Aspects of the tax holiday incentive for agricture by targeting this incentive to small and medium sized companies that invest in primary crop, livestock, forestry and fishing agricultural production. This incentive is aiso to be administered by Nigerian Investment Promotion Commission pursuant to the Industrial Development (Income Tax Relief) Act.

The lawmakers are expected to commence legislative action on the request on another legislative day.

“While I trust that this Bill will be favourably considered for passage Into law by the National Assembly to as to support the implementation of the 2020 federal budget, please accept, Distinguished Senate President, the assurance of my highest consideration.”

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