Babajide Sanwo-Olu, the Governor of Lagos State, has signed the state Value Added Tax (VAT) Bill into law.
The State Commissioner for Information, Gbenga Omotosho this in a statement on Friday.
“Lagos State Governor Babajide Sanwo-Olu has signed into law the State VAT Bill as passed by the House of Assembly.
“The Governor signed the 'bill for a law to impose and charge VAT on certain goods and services' at about 11.45am today, after returning from an official trip to Abuja. By this act, the Bill has now become a Law,” Omotoso said.
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The bill was passed by the Lagos State House of Assembly.
Consumers pay VAT when they purchase goods or obtain services. All goods and services (produced within or imported into the country) are taxable except those specifically exempted by the VAT Act.
The VAT rate was raised in Nigeria from five percent to 7.5 percent in 2020.
VAT collection by the Federal Inland Revenue System (FIRS) on behalf of the Nigerian government has been a subject of controversy.
The FIRS, which administers the tax, transfers the generated revenue to the three levels of government via the federation accounts allocation committee (FAAC).