The House of Representatives has passed the Finance Act (Amendment) Bill for second reading, a component of which seeks to increase the Value Added Tax from five per cent to 7.5 per cent.
The amendments seek to provide for a review of tax provisions and make them more responsive to tax reform.
The bill, which has seven components, seeks to amend the Companies Income Tax Act, Value Added Tax Act, Customs and Excise Tariff (Consolidation) Act, Personal Income Tax Act, Capital Gains Tax Act, Stamp Duties Act and Petroleum Profit Tax Act.
At the plenary yesterday, most of the lawmakers on the platform of the Peoples Democratic Party (PDP) who contributed during the debate on the second reading of the bill supported the VAT increment.
President Muhammadu Buhari had, after laying the 2020 Appropriation Bill before the National Assembly, sent the executive bill to both the Senate and the House to approve the increment through the amendment.
