VAT Bill Passes Second Reading in Ogun Assembly

James Sowole in Abeokuta

The bill for to make law authorising Ogun State to collect Value Added Tax (VAT), the Ogun State Value Added Tax Law, 2021, has scaled first and second readings on the floor of the State House of Assembly

The bill, when becomes law and 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 lawmakers 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”,

The motion for the second reading of the bill, was moved by the Majority Leader, Honourable Yusuf Sheriff and seconded by Honourable Ganiyu Oyedeji.

It was unanimously supported by the whole House through a voice vote at a plenary presided over by Speaker, Olakunle Oluomo.

Contributing to the debate on the bill, Olakunle Sobukanla, Ganiyu Oyedeji, Adegoke Adeyanju and Abdul Bashir Oladunjoye, underscored the need for the enactment of the law in the state as a federating unit to further improve revenue accruable to the state.

The lawmakers lamented that the state often got lesser share of what it contributed under VAT to the Federation Account.

In their submissions, Honourables Kemi Oduwole, Oludaisi Elemide, Solomon Osho and Olusola Adams, explained that the bill was meant to improve on the state’s financial status through tax revenue generation, pointing out that VAT collection was presently not listed in the exclusive legislative list.

The lawmakers called for the speedy passage of the 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 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.

He said 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.