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The Presidency Has No Powers To Increase VAT In Nigeria

The Presidency Has No Powers To Increase VAT In Nigeria

The Presidency Has No Powers To Increase “VAT” In Nigeria.  Daily Law Tips (Tip 426) by Onyekachi Umah, Esq., LLM. ACIArb(UK)

Government and government affairs must be conducted within the laws of NIGERIA.
Value Added Tax (VAT) is a tax created by the National Assembly, payable only on some specific goods and services at the rate of 5% of the value (cost) of the goods/services.

VAT is created by (the Value Added Tax Act) a statute of National Assembly and not a mere executive order, policy or directive. Like any other law made by the National Assembly, the Value Added Tax Act (VAT Act) and it’s provisions cannot be altered, modified, changed, amended or compromised by the executive arm of government. It is only the National Assembly that can amend the VAT Act and its provision. The VAT Act specifies the rate of 5% for VAT and did not give any discretion to Federal Inland Revenue Service (FIRS), the Presidency or any person/body to increase or reduce the 5% rate. So, the presidency must approach the National Assembly for an amendment of the VAT Act before there can be an increase from the 5% rate of VAT and not by executive directives or orders.


Sections 1, 4, 46 and 47 of the Value Added Tax Act, 1993.


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