Outcries Greet Senate Passage of VAT Bill
Bill will bring more sufferings to Nigerians, argue Suswan, others
Outcries by many Nigerians greeted the Thursday passage of the Finance Bill 2019 which deals with increase in the payment of Value Added Tax. From 5 per cent to 7.5 per cent by the Senate.
Before the passage, the Upper Chamber of the National Assembly was divided on the Bill, but notwithstanding the bill was passed.
Those who kicked against the passage of the bill like many other Nigerians, including the Manufacturers Association of Nigeria (MAN) and the Nigeria Employers Consultative Association (NECA) had argued that it will further worsen the living conditions of Nigerians.
The Finance Bill was submitted to the Senate in October to amend Companies Income Tax Act; Value Added Tax Act; Customs and Excise Tariff; Personal Income Tax; Capital Gains Tax Act; Stamp Duty Act, and the Petroleum Profit Tax Act.
Chairman of the Senate Committee on Finance, Senator Olamilekan Adeola said the Bill will enhance the implementation and effectiveness of government’s tax policies.
Senator Gabriel Suswan who condemned the passage of the bill said it will shock many Nigerians as it will create more poverty in the land.
He said the federal government needs to introduce programmes to cushion the effect.
Suswan said, “ I am concerned about the issue of VAT, some of the amendments in the Value Added Tax no matter how you look at it is going to affect all Nigerians. What I suggest is for the Federal Government to create some social safety nets.
“The safety nets should ameliorate the pains that the people might go through as a result of the increase because it is coming as a shock to the people and as their representatives we have to speak on their behalf.
“Some of the amendments sought here are on the tax revenue and to increase it, no matter how you see it here, this is something that is going to affect all Nigerians”.
Senator Enyinnaya Abaribe also kicked against the passage, saying it was wrong since Nigerians are already suffering.
Enyeribe said, “I can see that rate of Value Added Tax has been changed. We feel that the rate of tax should be left as it is. Nigerians are suffering too much already.”
Senator Abba Moro also added his voice against the bill, “I understand that the amendments are due to lack of revenue, but the problem is not because we don’t have the revenue but because our revenues are not being properly managed.
“I don’t think there is any justification of an increase in VAT from 5 per cent to 7.5 per cent. We don’t create problems in attempting to solve a problem, what we need is policy implementation and proper management of our revenue’.
President of the Senate, Ahmad Lawan, however said it was aimed at having source of funding for 2020 budget.
Lawan said, “What we have done is very significant because this is to ensure we not only have credible and reliable sources of funding for the 2020 budget, but also for subsequent activities of government.
“The revenue generating agencies will have to sit up. The National Assembly, particularly the Senate, will be mounting a lot of oversight on the revenue generating agencies.
“If they have targets, we must ensure they meet these targets. What we intend to do is to engage the revenue generating agencies on a quarterly basis to evaluate their performance on revenue generation, and to identify if there are challenges and how we can achieve better outcomes.
“I believe what we have done is not to put tax burdens on the ordinary people. What we have done is to create more revenues to provide services and infrastructure for Nigerians, including the ordinary people. This exercise was done in a bi-partisan manner, and that is what we are known for.”
Many Nigerians who spoke on the issue in social circles, media platforms said the passage will worsen the poverty situation in Nigeria.
According to them, it is an act of insensitivity of the living condition of Nigerians for the Senate to have passed the Bill.
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