The proposed Value Added Tax (VAT) increment is already being opposed, as a member of the House of Representatives and Chief Executive Officer of Nairabet, Akin Alabi has vowed to ensure that the proposal is rejected by the National Assembly.
Akin Alabi who is a member of the ruling All Progressives Congress (APC) tweeted on Thursday, September 12, that whenever the executive brings the bill to the National Assembly, he will be against it.
The Federal Executive Council on Wednesday approved an increase in the Value Added Tax (VAT) payable in Nigeria from the 5% to 7.5%.
Zainab Ahmed, the Minister of Finance made this disclosure during an interview with reporters after the FEC meeting on Wednesday.
“We also reported to Council and Council has agreed that we start the process to increase the VAT rate. We are proposing and Council has agreed to increase the VAT rate from five per cent to 7.2 per cent.
“This is important because the federal government only retains 15 per cent of the VAT. Also, 85% is actually for the states and local government. But the states need additional revenue to be able to meet the obligations of the minimum wage,“ Ahmed explained.
Meanwhile, Akin Alabi tweeted via his verified Twitter handle to register his displeasure at the mandate.
“I stand against the PROPOSED increase of VAT. For your information, it has not been increased yet. It is a proposal by the executive which will have to be debated on the floor of the National Assembly. I will argue against it and I’m sure it will be thrown out.”
I stand against the PROPOSED increase of VAT. For your information, it has not been increased yet. It is a proposal by the executive which will have to be debated on the floor of the National Assembly. I will argue against it and I’m sure it will be thrown out.
— Oloye Akin Alabi (@akinalabi) September 12, 2019
The House is due to resume from its 6 weeks annual recess on the 17th of this month.
It is unclear what the impact of a rejection of the bill will have on the 2020 appropriation bill.
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