The House of Representatives, on Tuesday, rejected a motion seeking the suspension of the implementation of the 7.5 percent Value Added Tax (VAT) contained in the 2019 Finance Act in the interest of Nigerians, following the impacts of the Covid-19 pandemic.
The motion called on the House to appeal to the Federal Government to suspend the additional 2.5 percent VAT contained in the 2019 Finance Act until January 1, 2021 while all businesses should henceforth stop the charging of VAT directly from the consuming Public.
However, as soon as the Speaker of the House, Femi Gbajabiamila mentioned the motion under matters of public importance, the lawmakers rejected it and it was not even moved by Sponsor, Unyime Idem (PDP, Akwa Ibom).
They opined that since the 2.5 percent increase in VAT was already in the Act of the National Assembly which has been signed into law, it cannot be suspended by a motion but through a formal amendment Bill.
The Chairman of House Committee on Finance, James Faleke, who objected the motion, called the attention of the House to the fact that since the suspension of the 7.5 percent 00pVAT in the motion affects the 2019 Finance Act, it will be out of place to suspend it with just a motion.
Ruling, Gbajabiamila agreed with Faleke that the issue contained in the motion has a commencement date, which can only be altered through a formal amendment Bill.
The bill sponsor, Idem, argued in motion that, the House is aware that in December, 2019 it had passed the Finance Bill of 2019 which was subsequently signed into Law by the President of the Federal Republic of Nigeria.
He said the Finance Act changed the Nigerian tax regime by amending amongst others VAT and made changes that are primarily focused on raising additional revenues in order for the Federal Government to meet the 2020 budget targets.
According to the lawmaker, the House noted that Companies and Enterprises in Nigeria are directly charging their customers these VAT on all products and Services.
”Further notes that although the Value Added Tax is in the interest of our economy, it was made without taking into cognizance the negative impacts of the COVID-19 Pandemic on Nigeria and the World at large as it was not in sight at the time; a situation that has led to the increase in the cost of goods and services in the country”.He said to the house.
Further speaking, the lawmaker also said the House is concerned that the COVID-19 pandemic and the lockdown that was declared across the country have affected the personal economies of virtually all Nigerians with the poor crying on a daily basis.
“More concerned that in spite of the effects of the pandemic on Nigerians and the economy, prices of goods and services are continually and consistently increasing.
