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Ndubuisi Orji, Abuja
The House of Representatives, yesterday, rejected a motion seeking the suspension of the new Value Added Tax (VAT) rate of 7.5 per cent until January 1, 2021, owing to the economic impact of COVID-19.
Unyime Idem who sponsored the motion prayed the House to prevail on the Federal Government to suspend the payment of additional 2.5 per cent VAT as contained in the Financial Act 20119 until January 1, 2021.
Idem in his motion argued that though VAT was in the interest of the country’s economy, it was increased without taking into cognizance the negative impact of COVID -19 on private incomes of majority of citizens.
The lawmaker noted that because of the pandemic, prices of goods and services were on the increase, with life made more difficult for citizens, given the lockdown and ban on inter-state ban by the government.
