The House of Representatives has adopted the tax reform bill as a working document.
The adoption followed the submission of the committee on Finance report.
Arising from the Committee of the whole, the Speaker of the House of Representatives, Mr. Tajudeen Abbas said that the House having deliberated on the clauses of the bill adopted it as a working document.
Mr. Abbas who commended the Committee on Finance for a work well done, said that the report was a reflection of Nigeria’s mind.
The finance committee amongst others recommended that Value Added Tax by left at 7.5% while consumption of VAT is to determined by the place of consumption, irrespective of where the return is filed.
Still under the VAT, the committee recommended that the amount of the VAT revenue standing to the credit of states and local governments shall be distributed among them on the basis of Equally – 50%; Population – 20%; Consumption – 30%.
Speaker of the House, Mr. Abbas Tajudeen, commended the committee for a job well done saying their recommendations reflects the input of Nigerians.
“All the 36 states including FCT have their representatives in the sub-comittee.This is the first time such a report is getting hundred percent approval by almost all members,” Mr. Abbas said.
While presenting the report, the Chairman of Finance Committee, Rep. James Faleke said that contentious areas were well taken care of.
He said that the committee recommended that Value Added Tax be based on consumption area.
He explained that Value Added Tax still remained 7.5 percent as it had been.
Mr. Faleke also said that the Committee repealed FIRS and established Nigeria Revenue Service.
He said that Nigeria Revenue Service would be saddled with the responsibility of collecting revenues the federal government of Nigeria.
He however expressed optimism that Nigeria Revenue Service would enhance seamless tax harmonisation and administration.
There was a robust debate on the report.
Mr. Babajimi Benson said that the team did a great job.
“Indeed it’s a good day for Nigeria,” he said.
Mr. Abdullahi Said, said that the finance committee was able to allay the fears of Nigerians on the tax bills.
Other lawmakers also affirmed the decision of the House.
Lateefah Ibrahim
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