
The Digest:
A bill seeking to place Value-Added Tax (VAT) on the exclusive legislative list has passed its second reading in the House of Representatives. The proposed law aims to resolve the prolonged conflict between federal and state governments over VAT collection by establishing a uniform, national system and prohibiting the outsourcing of tax collection to private agents.
Key Points:
- A bill to include VAT in the exclusive legislative list has passed its second reading.
- It is co-sponsored by Deputy Speaker Benjamin Kalu and six other lawmakers.
- The bill aims to erase confusion and litigation over VAT collection rights.
- It seeks to introduce "VAT or consumption tax" as a new item on the exclusive list.
- The proposed law prohibits the outsourcing of tax collection to private entities.
- It sets a ceiling of nine different taxes that can be imposed on a person per year.
- The move follows a legal tussle between FIRS and the Rivers State government.
Sources: The Cable