The move by the Federal Inland Revenue Services (FIRS) to have the Value Added Tax (VAT) on the exclusive list has been rejected by the national assembly.
The bill to “Alter Part I of the Second Schedule to the Constitution of the Federal Republic of Nigeria, 1999 to include Value Added Tax on the Exclusive Legislative List; and for Related Matters” failed to pass after both chambers voted against it on Tuesday.
At the house of representatives, about 200 lawmakers voted against the constitutional amendment, while 91 voted in favour.
The senate also rejected the bill as 44 senators kicked against it while 41 voted in support.
In August 2021, the FIRS proposed the insertion of VAT immediately after Stamp Duties under item 58 part II of the 2nd schedule of the 1999 Constitution.
But the proposal negates Part II of the concurrent legislative list of the Second Schedule of the 1999 constitution as amended, delegating the collection of such taxes to the state government or other authority of the state.
The move came in the wake of a legal contest between Rivers state government and the agency over collecting VAT and personal income tax (PIT) in the state.
The matter is currently pending at the supreme court for a ruling.