BREAKING: House Of Reps Passes Bill For States To Collect VAT

States To Collect VAT

House Of Reps has passed a bill enabling states to collect VAT in Nigeria.



Ekohotblog reports that law to enable states’ to collect Value Added Taxes, VAT and their right to mine and control their resources, has been reportedly passed by the House of Representatives.


This online newspaper understands that some states across the federation, are currently in a legal tussle with the Federal Government on who collects VAT on goods and services.


A bill to that effect, entitled “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”, sponsored by Reps Hassan Usman Sokodabo and John Dyegh, was exclusively obtained by VANGUARD.

According to the instrument bill obtained by VANGUARD in a report monitored by Ekohotblog, it proposes in part, that “The Constitution of the Federal Republic of Nigeria, 1999, is hereby altered as set out. 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 read: States Government shall manage their resources, mines and minerals, including oil fields, oil mining, Values Added Tax(VAT), geological surveys as well as natural gas. 50% of the total revenue accruable from the minerals shall be retained by the state where the minerals are derived.

“30% shall be credited to the Distributable Pool Account, while the remaining 20%, shall be credited to the Federation Account”.


The piece of legislation listed for consideration in this legislative quarter is expected to generate considerable controversy, sources told VANGUARD.

Advertise or Publish a Story on EkoHot Blog:

Kindly contact us at Breaking stories should be sent to the above email and substantiated with pictorial evidence.

Citizen journalists will receive a token as data incentive.

Call or Whatsapp: 0803 561 7233, 0703 414 5611