BREAKING: House Of Reps Dumps Buhari, Backs Wike, Sanwo-Olu To Collect VAT

House Of Reps has dumped President Buhari and backed Wike, Sanwo-Olu among other State Governors to collect VAT in a new bill.

 

Newsonline reports that law seeking to enable states’ to collect Value Added Taxes, VAT and enforce Governor’s rights to mine and control state resources, has been reportedly passed by the House of Representatives.

 

This online platform understands that some states across the federation, are currently in a legal tussle with the Federal Government on who collects VAT on goods and services.

 

A bill to that effect, entitled “An Act to Alter 39, Part 1 of the Second Schedule of the 1999 Constitution as Amended to Substitute and Move the Item from the Exclusive Legislative List to the Concurrent Legislative List”, sponsored by Reps Hassan Usman Sokodabo and John Dyegh, was exclusively obtained by VANGUARD.

 

According to the instrument bill obtained by VANGUARD, the new bill proposes in part, that “The Constitution of the Federal Republic of Nigeria, 1999, is hereby altered as set out. Item 39, part 1 of the Second Schedule of the Principal Act, Altered by substituting the item and moving it from the Exclusive Legislative List, to the Concurrent List.

 

“Thus, item 39, Part 1 of the Second Schedule of the Constitution to be moved to the Concurrent Legislative List now read: States Government shall manage their resources, mines and minerals, including oil fields, oil mining, Values Added Tax(VAT), geological surveys as well as natural gas. 50% of the total revenue accruable from the minerals shall be retained by the state where the minerals are derived.

 

“30% shall be credited to the Distributable Pool Account, while the remaining 20%, shall be credited to the Federation Account”.

 

The piece of legislation listed for consideration in this legislative quarter is expected to generate considerable controversy, sources told VANGUARD.