Lagos Lawmakers Pass Value Added Tax, Open Grazing Bills
Members of the Lagos state House of Assembly on Thursday passed the Value Added Tax (VAT) bill and the Anti-Open Grazing bill after unanimous votes during a plenary session.
Some economically active states have in recent times clamour for collection in order to drive internally generated revenue. Nigerian Federal Inland Revenue Service, FIRS, has not taken the issue with levity after Federal High Court in Rivers affirmed the state as the responsible agent for VAT collection.
While FIRS appeal the decision of the court, another court has also made a similar declaration against the Federal tax agency.
Following the passage of the Bill, the Speaker of the House, Rt (Hon) Mudashiru Obasa, however, directed the Acting Clerk of the House, Barr. Olalekan Onafeko to submit a clean copy to the governor for his assent.
Some tax experts believe that the new fiscal development would support the economy of states that are active while others like Kano that align with a faith-based policy against VAT paying companies activities would have their revenues impacted.
Speaking with journalists after the plenary, the Chairman House Committee on Finance, Hon. Rotimi Olowo said since Nigeria is a federal state and Lagos is a component unit of the federation, the state should be allowed to collect the VAT within its jurisdiction for the benefit of its people.
Olowo added that the goods from which VAT was collected were goods produced and consumed in Lagos, adding that the collection of VAT is residual and should be collected by the state.
The lawmaker reiterated that the state contributed 55% of the VAT collected by the federal government, adding that about N600bn is supposed to be accrued to Lagos annually.
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He added that what was given to Lagos from the VAT is less than N40bn despite its huge contribution.
”We have LIRS that is doing the same job as FIRS and even FIRS is not collecting it free of charge. Constitutionally, it is the responsibility of the State to be collecting VAT and so we have to cash in on that and so, that is why we come up with a law that will empower LIRS as a state agency saddled with the responsibility of collecting taxes.
” VAT is a tax imposed on the consumption of goods and services. It is within the purview of the state to enact a law for the collection and remittance of same to state government “, he concluded.
Also, the Chairman House Committee on Agriculture and Cooperative, Hon. Kehinde Joseph said that the anti-open grazing bill was a sensitive one but equally it was a bill for the peaceful co-existence of the people in the state.
Joseph said the bill when assent by the governor would protect the citizens, farmers and herders operating in the state, adding that it would also enhance the economy of the state.
He stated that henceforth anybody engaging in open-grazing would be appended to face the full wrath of the law, calling on everyone to support the bill for peaceful coexistence.
Recalled that the House held separate public hearings on the bills on Wednesday where stakeholders’ views were heard and collated.
Lagos Lawmakers Pass Value Added Tax, Open Grazing Bills
