Reps Considering A Bill To Support States Collection Of VAT

(Last Updated On: 2021-09-24)


House of Representatives is considering a legislation that will back states to collect VAT and as well control the resources domiciled in their place.

The bill is titled ‘An Act to Alter 39, Part 1 of the Second Schedule of the 1999 Constitution as Amended to Substitute and Move the Item from the Exclusive Legislative List to the Concurrent Legislative List’, which is co-sponsored by Hassan Usman Sokodabo and John Dyegh.

According to a document, the bill stipulates that: “The Constitution of the Federal Republic of Nigeria, 1999, is hereby altered as set out in Item 39, part 1 of the Second Schedule of the Principal Act, altered by substituting the item and moving it from the Exclusive Legislative List, to the Concurrent List.

“Thus, item 39, Part 1 of the Second Schedule of the Constitution to be moved to the Concurrent Legislative List now to read: States Government shall manage their resources, mines and minerals, including oil fields, oil mining, Value Added Tax (VAT), geological surveys as well as natural gas.

“Fifty per cent of the total revenue accruable from the minerals shall be retained by the state where the minerals are derived. Thirty per cent shall be credited to the Distributable Pool Account, while the remaining 20 per cent shall be credited to the Federation Account.”

This development is set to upturn the applecart, as it will further strengthen the states in its dispute with the Federal Government, already being spearheaded by Rivers and Lagos.

Governors in support of states collecting the revenue are behind the latest move by lawmakers to back the states

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“Of course, the governors have representatives at the National Assembly, so what is wrong with them asking their lawmakers to back them up in their quest for self sustainability,” a source who pleaded anonymity said.

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