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Bill To Increase VAT Up For Second Reading



The House of Representatives is currently in turmoil over the announcement of minority leadership positions in the House.

The Finance Act (Amendment) Bill, a component of which seeks to increase the Value Added Tax from 5 per cent to 7.5 per cent has passed for second reading at the House of Representatives.

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.

In an exclusive report by The PUNCH earlier on Tuesday, several members of the House had criticised the plan by the Federal Government to raise the VAT.

According to the lawmakers, in separate interviews, higher VAT will create more hardships for the masses.

The lawmakers, who are members of the opposition Peoples Democratic Party, asked that the rich be taxed more through the luxury

items they consume.

However, at the second hearing on Wednesday, most of the PDP lawmakers who spoke backed the bill.

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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.

The bill had narrowly passed second reading at the Senate, with several senators vowing to mobilise stakeholders against it during public hearings.

Credit: Punch

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