Why VAT Law Will Be Beneficial to Lagos, Obasa, Residents Speak reveal
The speaker of the Lagos House of Assembly, Mudashiru Obasa, has revealed how the VAT law would impact the state
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Obasa noted that states have always felt financially strangulated and unfairly treated by the federal government
According to him, the Lagos state government generates an excess of N500 billion in Value Added Tax (VAT)
Alausa, Lagos - Mudashiru Obasa, the speaker of the Lagos state House of Assembly, on Wednesday, September 9, said the proposed law on Value Added Tax (VAT) would help the state meet more of its developmental goals.
Legit.ng gathered that Obasa said this during a public hearing on a bill for the Lagos state Value Added Tax (VAT) and for other connected purposes.
Source: UGC
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This was as stakeholders at the hearing commended the Lagos state Assembly and its leadership for their determination to ensure that the bill becomes law.
In his remark, Obasa noted that states have always felt financially strangulated and unfairly treated by the federal government in her administration and appropriation of receipts of VAT.
Speaking through the deputy speaker, Wasiu Eshilokun-Sanni, who represented him, Obasa said that Lagos state generates an excess of N500 billion in VAT.
He said:
“If we go by generation trend in tandem with the N2.4 trillion forecasted by the FIRS, Lagos state will be contributing about 55 percent of the total VAT collectables in the entire country.
“But what do we get in return? Some paltry sum. This injustice and inequity are part of the premises on which some of the extant agitations are founded.”
The speaker said this agitation had been helped by the judgement of a Federal High Court in the case of the attorney-general of Rivers state versus the Federal Inland Revenue Service (2020) in which the rights of Rivers state (by extension, other states) were upheld.
He added:
“Though the FIRS has expectedly appealed the judgement to the Court of Appeal, it is expected that the appellate court will follow the sound logic in the Federal High Court decision. More so, this action brings to the fore of actualization, the true federalism for which we have been agitating."
The speaker said the proposed law would allow the state more resources to meet its developmental goals.
The state attorney-general and commissioner for justice, Moyosere Onigbanjo (SAN), said every state of the federation stood to benefit from the judgement of the court.
Speaking at the event, the chairman of the House committee on finance, Rotimi Olowo, said even though Lagos is prosperous, it can do better and VAT would help with the resources it needs.
Lagos Assembly passes VAT, anti-open grazing bills
Meanwhile, Legit.ng had previously reported that the Lagos State House of Assembly passed the State’s Value Added Tax (VAT) bill.
It was reported that the House passed the bill that prohibits open cattle grazing in the state. The two bills were passed after unanimous votes by the lawmakers.
Speaker of the House, Mudashiru Obasa directed the acting clerk, Olalekan Onafeko, to transmit a clean copy to Governor Babajide Sanwo-Olu, for assent.
Source: Legit.ng
