There are indications that some senators may reject the proposed increment of Value Added Tax from five per cent to 7.5 per cent.
Investigation by reporters revealed that the federal lawmakers are planning to frustrate the passage of the Finance Bill, which is expected to be submitted by President Muhammadu Buhari alongside the 2020 Appropriation Bill on Tuesday.
The Finance Bill is expected to amend an Act of the National Assembly, which fixed five per cent as the amount payable by Nigerians on consumables, goods and services.
However, our correspondent learnt that many of the senators are opposed to the increment, saying it could inflict more hardship on Nigerians.
Leading the group of senators who are opposed to the VAT increment is a former Senate Leader, Ali Ndume, who also contested the 9th Senate Presidency but lost to the incumbent, Ahmad Lawan.
Ndume also proposed a bill for the imposition of nine per cent on telephone and data users as well as the pay-per-view cable subscribers.
Ndume told our correspondent that his bill, which has passed first reading, was aimed at replacing the proposed 2.5 per cent increase in the Value Added Tax set to be introduced by the Federal Government.
The senator said majority of his colleagues in the Senate were in support of his position, adding that the tax was a better way of distributing wealth in a way that would not affect the people.
He said, “I’m vehemently opposed to the Finance Bill, which is aimed at increasing the VAT. My colleagues in the Senate are on the same page with me on this (CST), which is the alternative we are proposing.
“When the CST was introduced in Ghana, they slashed the percentage on VAT, so the burden is no longer on the masses but on those who can afford telephone and cable television services.”
A cross section of senators who spoke on the condition of anonymity, told our correspondent that they were of the view that a further increment in VAT would cause inflation.
They, however, said the rejection of the Finance Bill or the adoption of the CST Bill depended largely on the views of Nigerians during the public hearing on the proposed communication service tax bill.
But the Chairman, Senate Committee on Finance, Solomon Adeola, said the Finance Bill would be sent to the National Assembly alongside the 2020 Appropriation Bill and that the senate would deliberate on the VAT element contained in the bill.
Adeola said, “The bill will be quickly attended to because we need to shore up the revenue base of the Federal Government and ensure prompt payment of minimum wage.”
He explained that his committee, with the support of the Senate, has mapped out series of strategies to ensure that the country increased its internally generated revenues in order to fund the 2020 budget.
He said, “The Senate will carry out consistent oversight on the CBN to ensure that the e-stamp duty is increased,” adding that the management of the apex bank would be invited to give account of the policy.
He also noted that the National Assembly had decided to investigate the Nigerian National Petroleum Corporation in relation to the Joint Venture Cash Call agreement that it entered into with international oil companies.
“Only this year we would be paying N993bn to all the IOCs. The question is, who determines the cost and how did they arrive at the figure? The debt they are even talking about, how did we come by it? What are the details of the agreement between us and the JVCC?
“Over the years, we have not seen anything in this direction. We will also summon the IOCs and ensure that we get back the nation’s money from them.”
Credit: punchng.com
