Buhari wants Senate to change implementation date for 7.5% VAT

President Muhammadu Buhari has asked the Nigerian Senate to change the date for the implementation of 7.5 per cent for Value Added Tax (VAT).

The request was contained in a letter he sent to the lawmakers asking them to amend the Finance Act recently passed by the National Assembly.

The letter was read out by the Senate President, Ahmad Lawan, at plenary on Tuesday.

According to Buhari, the new law should take effect from February 1.

Ordinarily, new laws usually come into effect as soon as they are signed by the President.

Buhari had signed the Finance Bill into law on January 13, after it was passed by the Senate in November 2019.

Why the President asked that the law should effect from February 1 and not from the date he signed it into law is not known.

Buhari’s letter to the senators read:

“Pursuant to Sections 58 and 59 of Constitution of the Federal Republic of Nigeria 1999 (as amended), l formally request that the Finance Act, 2019 (Amendment) Bill be considered by the Senate for passage into law.

“This bill seeks to amend the Finance Act, 2019 recently passed by the National Assembly.

“That the administrative effective date for the increase in Value Added Tax from 5% to 7.5% is the 1st of February 2020;

“(ii) That ‘Animal Feeds’ are included in the list of Basic Food Items that are exempt from Value Added Tax; and

“(iii) Aspects of the tax holiday incentive for agriculture by targeting this incentive to small and medium sized companies that invest in primary crop, livestock, forestry and fishing agricultural production. This incentive is also to be administered by Nigerian Investment Promotion Commission pursuant to the Industrial Development (Income Tax Relief) Act.

READ ALSO: Buhari requests Reps to amend new Finance Act

“While I trust that this Bill will be favourably considered for passage Into law by the National Assembly to as to support the implementation of the 2020 federal budget, please accept, Distinguished Senate President, the assurance of my highest consideration.”

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