The Ogun State House of Assembly held a stakeholder meeting on Thursday on the State Value Added Tax Bill, 2021, which had already passed second reading.
The Assembly noted that the State deserved much better than what it received from VAT through the Federation account. However, he requested a higher percentage in the formula for sharing VAT revenues from local government councils to help grassroots development.
Speaker Olakunle Oluomo said this while declaring open the stakeholder forum on âHB 073 / OG / 2021 – A bill to impose and charge value added tax on certain goods and services, to provide for the administration of the tax and for related purposes âheld at the Assembly complex, Oke-Mosan, Abeokuta.
Oluomo said the state value-added tax bill, 2021, remains one of the Assembly’s initiatives as a progressive legislative institution poised to achieve workable tax restructuring in the country.
He clarified that the bill would ensure improved revenue for the state, adding that the revenue item was not listed in the exclusive list of the national constitution.
He said: âThe Southwestern Conference of Presidents has already put in place more feasible modalities to enhance the collective development of the Southwestern states, to further promote efficient service delivery and to pave the way for true federalism. tax.
âIt had become imperative to improve the internally generated revenue of the state to help implement increased socio-economic development in all parts of the state. ”
In the meantime, the stakeholders have asked for a review of the recoverable amounts for VAT, the percentage of sharing between the State and local communities.
Stakeholders which include representatives of the national sections of the Nigerian Authors’ Association and the Guild of Public Affairs Analysts, Dr Paul Oni, Human Rights Advocacy Committee, Yinka Folarin, Director of Promotion Industry at the Ministry of Industry, Trade and Investments, Kehinde Akintomide and a former member of the Assembly, Habeeb Ajayi, among others, congratulated the Assembly on the introduction of the bill.
They also sought flexibility in VAT collection to encourage compliance and sustainability, especially as it affected small and medium-sized businesses in the implementation of the law when it was passed by the Assembly and the approval of the state governor, Dapo Abiodun.
Internal Revenue Service Board Chairman Gbenga Olaleye called for the bill to be amended to include the taxation of e-commerce and related businesses given the introduction of digital technology in trade.
He also proposed a 70 percent share percentage to the state and the remaining 30 percent to local government councils.