VAT Bill Scales First, Second Reading In Ogun Assembly

Ogun State House of Assembly has begun consideration of the State Value Added Tax Law, 2021

The bill on Tuesday, scaled through first and second readings on the floor of the State House of Assembly at Oke-mosan Abeokuta in the state capital

Edu-Biznews recalled that the both Lagos and Rivers  State Houses of Assembly passed the VAT bill into law already signed by Governors Babajide Sanwo-Olu and Nyesom Wike to make it operational in the two Southern States,despite the order by Court of Appeal in Abuja ,restraining Rivers State Government and  opposition by the Federal Inland Revenue Service who is insisting on collecting the VAT on behalf of the states in Nigeria  

But all the lawmakers kicked against the Federal Government revenue agency, as they unanimously agreed that the bill, when operational, would accord the State its rightful position as a viable federating unit amongst the comity of States generating worthy financial returns in the country.

The Majority Leader, Yusuf Sheriff moved motion for the second reading of the bill seconded by Ganiyu Oyedeji and supported by the Whole House through a voice vote at a plenary presided over by Speaker Olakunle Oluomo at the Assembly Complex, Oke-Mosan, Abeokuta.

The lawmakers during the debate on the bill, took turn to throw their weight behind the bill title "H.B No. 73/OG/2021- A Bill for a law to impose and charge value added Tax on certain Goods and services, provide for the administration of the Tax and for related purposes", 

Contributing to the bill, Olakunle Sobukanla, Ganiyu Oyedeji, Adegoke Adeyanju and Abdul Bashir Oladunjoye, underscored the need for the enactment of the proposed law in the State as a federating unit to further improve revenue accruable to the State, with a view to ensuring a seamless funding of more developmental projects

They lamenting that the State often got a lesser share of what it contributed under VAT to the federal government.

Honourables Kemi Oduwole, Oludaisi Elemide, Solomon Osho and Olusola Adams in their respective submissions, opined that the bill was meant to improve on the State’s financial status through tax revenue generation, 

The members pointed  out that VAT collection was presently not listed in the exclusive legislative list and thereafter sought for the consideration of tax reduction for owners of small and medium scale business.

On their part, Honourables Atinuke Bello, Sylvester Abiodun, Musefiu Lamidi and Yusuf Sheriff called for the speedy passage of the proposed bill, noting that it was a pointer to the fiscal restructuring, which had been an issue of national discourse.

Responding, Speaker Oluomo lauded his colleague-lawmakers for their contributions to the bill and posited that the leading position of the State among the comity of States in the area of revenue generation must be complemented with equal remittance of allocation on monthly basis from the Federation account

The Speaker stressed that the passage of the new VAT law was part of the need for the fulfilment of fiscal federalism.

He thereafter committed the bill to the Committee on Finance and Appropriation for further legislative actions, just as he announced that the public hearing on the bill would hold on Thursday, 16th September, 2021 at 10:00 am prompt.

In a related development, the State Anti-Corruption Law, 2021- A Bill for a law to establish the Ogun State Public Complaints and Anti-Corruption Commission Law scaled first reading in the Assembly as it was read for the first time on the floor by the Clerk and Head of Legislative Service, Mr. Deji Adeyemo.