Ogun to join Rivers, Lagos on VAT collection as bill scales second reading

A bill seeking to establish a law to impose and charge value-added tax (VAT) on certain goods and services in Ogun state has scaled the second reading at the state house of assembly.

Since the Rivers state ruling on VAT collection, there has been a controversy on who should collect VAT, whether state governments or the Federal Inland Revenue Service (FIRS).

If the bill scaled through, Ogun state will join Rivers and Lagos states on the list of states that have enacted laws for collecting VAT from businesses.

Last week, the court of appeal in Abuja directed Rivers and Lagos to maintain status quo (to maintain the situation as it existed before), pending the determination of an appeal filed by FIRS.

Deji Adeyemo, clerk of the state assembly, read the bill for the first time during the plenary session in Abeokuta on Tuesday, according to the News Agency of Nigeria (NAN).

Yusuf Sherif, the majority leader, moved the motion for the second reading which was seconded by Ganiyu Oyedeji.

At the opening debate of the bill, Olakunle Sobukanla, chairman of the house committee on finance and appropriation, said the bill is an avenue for Ogun to generate more revenue for the state’s development.

Sobukanla said that the more internally generated revenue by the state, the more infrastructure development in all sectors.

Oyedeji, in his submission, said the people’s needs included the fixing of bad roads and the construction of new ones, provision of healthcare facilities, among others, which all required finance.

Other lawmakers supported the quick passage of the bill, saying that it would boost the socio-economic development of the state.

Olakunle Oluomo, speaker of the house, committed the bill to the House Committee on finance and appropriation for further legislative actions.