Breaking: Reps reject motion to suspend 7.5% VAT

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 impacts of the COVID-19 pandemic.

The lawmakers said noted that since the 2.5 % increase in VAT has already been passed by the National Assembly and 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.