By Shola Abayomi.
Sequel to the Federal Government’s proposed increase of the Valued Added Tax (VAT) from 5 percent to 7.5 percent, a member of the All Progressives Congress (APC) and lawmaker representing Egbeda/Ona Ara federal constituency in the House of Representatives, Hon. Akin Alabi has described the proposal as dead on arrival.
Alabi, in a tweet today, vowed to oppose the move when presented on the floor of the National Assembly.
According to the APC lawmaker, the Federal Government’s proposal for VAT increase would certainly be thrown out by lawmakers.
He wrote, “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.”
The Minister of Finance, Mrs. Zainab Ahmed, on Wednesday disclosed that the Federal Executive Council (FEC) had approved an increase in the Value Added Tax (VAT) from 5% to 7.5% during a meeting chaired by President Muhammadu Buhari.
The minister, however noted that the increase will take effect after the VAT Act is amended by the National Assembly and after consultation with stakeholders such as states, local councils, the private sector among others.
“Our projection is to finish consultations early enough so that it takes effect in 2020”, she said.
She added also that, “this is important because the federal government only retains 15 per cent of the VAT, 85 per cent is actually for the states and local government and the states need additional revenue to be able to meet the obligations of the minimum wage.”