Politics

Senate approves 3% VAT for N’East devt

Published

8 years ago

October 13, 2016

The Senate, today, resolved to set aside 3% of the Federal Value Added Taxes (VAT) for the development of ravaged North-eastern part of the country.

Also, the Senate has agreed that the headquarters of the proposed North East Development Commission (NEDC) will be sited in Maiduguri, Borno state.

The resolution of the Senate followed the consideration of a report of its ad hoc committee on NEDC Bill, headed by Senator Sam Egwu from Ebonyi state.

Although the Bill is yet to be passed by the Senate, unlike the House of Representatives, it has however resolved the three grey areas which stalled its passage since June this year.

Lawmakers from the North-East in June this year, disagreed on where the headquarters of the proposed NEDC should be located. This forced the Senate to suspend the passage of the bill seeking its establishment.

Also, the inability of the Senators to reach a clear-cut agreement on the source of the commission’s funding was another issue that led to the non-passage of the bill

Senator Ali Wakili, representing Bauchi South, stirred the controversy in his contribution to the debate. He had suggested the need to site the commission in Bauchi, his home state, against the recommendation of the Senate Committee on Special Duties, which had proposed that the commission’s headquarters be located in Abuja.

Wakil’s position that the commission’s headquarters be sited in Bauchi, prompted another suggestion by Senator Baba Garbai, representing Borno Central, that the commission be sited in Maiduguri, capital of his home state.

This, again was punctured by Senator Usman Nafada, representing Gombe North, who suggested that the headquarters be located in Gombe, his state.

The Senate Leader, Ali Ndume, who represents Borno South in Borno State, bemoaned the disagreement among his kinsmen over the location of the commission’s headquarters and said it was untidy to bring such a matter to the floor when they ought to have resolved it at the caucus level.

But Senator Egwu’s committee reviewed and agreed with the funding arrangement that was proposed in the Bill. The earlier proposed 5% of the Federa| VAT was reduced to 3%. The committee also reviewed the period during which the commission will exist to 10 years.

Egwu The Committee discussed the possible location of the Headquarters of the North East Development Commission. It considered scope of distinction, security, connectivity, availability of support and the general opinion of those from the Zone.

The Bill has been referred to Special Duties Committee to reflect the new inputs before it’s final passage by the Senate in the coming days.

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now