The House of Representatives lawmakers have rejected proposal to move the collection of the Value Added Tax (VAT) to the Exclusive Legislative List during their ongoing deliberations on the amendments of the 1999 Constitution.
In the vote for or against the proposal on Tuesday, majority of the Green Chamber’s lawmakers were against the addition of the VAT to the Exclusive Legislative List.
Specifically, 209 voted against the inclusion of the tax in the list while 91 voted in support of movement of the collection of Value Added Tax (VAT) from concurrent to the exclusive legislative list.
Clause 34 was on a “Bill for an Act to Alter Part I of the Second Schedule to the Constitution of the Federal Republic of Nigeria, 1999 to include Value Added Tax on the Exclusive Legislative List; and for Related Matters and approve the recommendations therein.”
It would be recalled that VAT collection has been a subject generating controversy among the tiers of government in recent months with the state governments seeking judicial interpretation of the Constitutional provisions on the tax.
For instance, while a Port Harcourt Federal High Court had ruled that the Rivers State government had the powers to collect VAT within its territory following which the state government enacted the state VAT law, Lagos State Government followed suit by enacting and signing the state VAT bill into law.
Lagos State joined Rivers State as a co-defendant in an appeal filed by the Federal Inland Revenue Service (FIRS) against the Federal High Court judgment but an Abuja Court of Appeal ruled that all parties in the matter should maintain the status quo.
Determined to pursue the legal step to conclusion, the Rivers State Government approached the Supreme Court on the VAT collection for interpretation of the Constitutional provisions as they relate to to the tax.
The apex court has fixed May 6, 2022 to deliver judgment on an appeal filed by the Rivers State government to set aside the ruling of Court of Appeal and to order that the substantive appeal by the FIRS and all other processes be heard and determined by a new panel of the Court of Appeal.
Similarly, the lawmakers during the plenary also rejected Clause 35 which seeks to Alter the Provisions of the Constitution of the Federal Republic of Nigeria, 1999 to Provide for Special Seat for Women in the National and State Houses of Assembly; and for Related Matters and approve the recommendations therein.”
