What Buhari Govt Needs To Do Before Increasing VAT – Falana

What Buhari Govt Needs To Do Before Increasing VAT - Falana

Human rights lawyer Femi Falana. (photo: Channels TV)

One of Nigeria’s revered lawyers Femi Falana (SAN) has called on the Federal Government to propose a Money Bill to the National Assembly before the implementation of the increase in Value Added Tax (VAT).

Falana said that NASS erred by inviting the Minister of Finance and the Executive Chairman of the Federal Inland Revenue Service (FIRS) to clarify issues of VAT increment.

Concise News gathered that the human rights activist made this known in an interview with the News Agency of Nigeria (NAN) on Saturday in Abuja,

He said the provisions of the constitution stated that the President ought to have presented a money bill to be passed by the NASS before the increment.

“It’s illegal, under a democratic dispensation you cannot impose a tax or increase tax without a law made by the National Assembly or the State Assembly as the case may be,” the senior advocate of Nigeria said.

“In this case, it has to be realized that we are not under a military dictatorship.

“By virtue of section 59 of the Nigerian Constitution, any increase, levy or tax will have to be presented to the National Assembly by way of money Bill by the President, it has to be passed into law.

“The Senate erred in law by inviting them to come and clarify, the National Assembly has invited the Minister of Finance and the Federal Inland Revenue Services to come and clarify.

” No, the National Assembly must insist on its powers under Section 59 to pass a law to increase VAT or any tax, there can be no taxation without a legislation.

“The Federal Executive Council has no power under the Constitution to increase VAT or any tax in the country.”

This news medium earlier reported that the Federal Executive Council had last Wednesday approved the increment of VAT from 5 per cent to 7.5 per cent.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, had explained that the increase would only begin after the VAT Act was amended by the National Assembly and after consultations with the state and local government areas as well as the Nigerian populace.

She disclosed that the FEC approved the Medium Term Expenditure Framework and Fiscal Strategic Paper, MTEF/FSP for 2020 to 2022, which will guide the 2020 Budget.

The Minister also said the next step was to present the document to the National Assembly for consideration.

Have a story to tell, or images to share on interesting Nigeria news? Send them to Concise News via Whatsapp (0906 928 2577)

Babatunde Adedayo Oluwafunmilayo is a Mass Communication graduate of Nigerian Institute of Journalism (NIJ). She is also an Associate Member of Nigeria Institute of Public Relations (NIPR). Adedayo loves writing motivational stories and poetry.

Tired of generators? Get PRAG INVERTER, Nigeria's No.1 Inverters Be the first to know...Get daily round up of top Nigerian newspaper headlines. Click here. Tired of estimated bills/generator noise? Go off the grid...get PRAG SOLAR for 24/7 noiseless and uninterrupted power supply.

Add Concise To Homescreen.