VAT increase: NASS must pass bill before implementation - Falana tells FG
- A famous human rights lawyer in Nigeria, Femi Falana, has revealed the only condition on which the proposed increment of the Value Added Tax (VAT) can be implemented
- Falana said that the federal government must first propose a money bill to the National Assembly before going ahead with the implementation
- The renowned lawyer said that it will be illegal in a democratic setting to impose tax increment on citizens without a law by the National Assembly
Human rights lawyer, Femi Falana, 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 told the News Agency of Nigeria in Abuja on Saturday, September 21, that the National Assembly erred by inviting the minister of finance and the Executive chairman of Federal Inland Revenue Service (FIRS) to clarify issues of VAT increment.
According to him, provisions of the constitution states 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 tax or increase tax without a law made by the National Assembly or the State Assembly as the case may be. In this case, it has to be realised 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.
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“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 legislation.
“The Federal Executive Council has no power under the Constitution to increase VAT or any tax in the country,” Falana said.
Meanwhile, Legit.ng reported that the Central Bank of Nigeria (CBN) recently announced the imposition of 2% charges on bank deposits above N500,000 in addition to already existing charges on withdrawals.
The development is part of the central bank's plan for nationwide implementation of the cashless policy which will begin by March 31, 2020.
The apex bank made this known in a circular to all Deposit Money Banks (DMBs) in the country on Tuesday, September 17.
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Source: Legit.ng
