Bill to Move VAT to Exclusive Legislative List Passes Second Reading

The House of Representatives has passed for second reading a bill seeking to include Value Added Tax, VAT, in the exclusive legislative list. The bill, co-sponsored by Deputy Speaker Benjamin Kalu and six other lawmakers, aims to clarify which level of government has authority over VAT collection.

Leading debate at Wednesday’s plenary, Joshua Gana, who represents Lavun, Mokwa and Edati constituency in Niger State, said the bill would eliminate confusion and duplication in Nigeria’s fiscal system. He noted that overlapping tax powers have led to inefficiencies, legal disputes, and loss of public trust.

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The proposed legislation also seeks to ban the outsourcing of tax collection to private firms and limit the number of taxes any person or business can be subjected to within a year. It further proposes a uniform national framework for VAT administration and coordination among the three tiers of government.

The move follows previous disputes between the Federal Inland Revenue Service and the Rivers State Government over VAT and personal income tax collection rights. A similar proposal was rejected in the ninth assembly during the last round of constitutional amendment votes.