Reps reject motion to suspend 7.5% VAT 

Femi Gbajabiamila
Speaker of the House of Representatives, Femi Gbajabiamila

 

The House of Representatives has rejected a motion seeking to suspend implementation of the 7.5% Value Added Tax (VAT) Act in the interest of Nigerians owing to the impacts of the COVID-19 pandemic. 

In rejecting the motion, the lawmakers said since the 2.5 % increase in VAT was already an Act of the National Assembly, which has been signed into law, it cannot be suspended by a motion. 

Chairman of the House Committee on Finance, James Faleke, had objected to the motion being moved and drew attention of the House to the fact that since the issue contained in the motion affects an existing law, it will be out of place to suspend it with just a motion. 

Speaker Femi Gbajabiamila, who agreed with Faleke, said the issue contained in the motion has a commencement date, which can only be altered through a formal amendment bill.



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