Sanwo-Olu signs bill on VAT collection into law

By our reporter/ Lagos state governor, Babajide Sanwo-Olu, on Friday signed into law the bill seeking to empower the state to collect value-added tax (VAT).

The commissioner for information and strategy Gbenga Omotosho, who made the disclosure in a statement, said the governor signed the “bill for a law to impose and charge VAT on certain goods and services” after returning from an official trip to Abuja on Friday.

“By this act, the bill has now become a law,” he added.

The VAT bill earlier in the week passed the first and second reading at the Lagos state house of assembly was subsequently passed into law on Wednesday.

VAT collection by the Federal Inland Revenue System (FIRS) on behalf of the federal government became a subject of controversy in recent weeks following the decision of a court in Port Harcourt, Rivers state restraining FIRS from the collection of VAT and empowered the Rivers state government to take charge.

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The decision was challenged by the the Federal Inland Revenue System (FIRS) at the Court of Appeal, Abuja which on Friday directed all parties to revert to status quo in a ruling.

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