The House of representatives has approved the increment of the value-added tax (VAT) from 5 per cent to 7.5 per cent. This assent was based on a request by President Muhammadu Buhari.
The lower legislative chamber approved the VAT request during the plenary session on Thursday, November 28. Buhari sent the finance bill in October.
Chairman of the Finance Committee, James Faleke from Lagos state presented the report.
Stamp duties apply to transactions above N10,000.
This move should end the feud between Federal Inland Revenue Services and Nigeria Postal Services on the collector of stamp duties.
Faleke said that only FIRS has the mandate to collect stamp duties; while disclosing that stamp duty is a tax.
Agricultural sector will also get tax holiday of 10 years, however, the concessions are for farmer who are also into processing.
Dividents will not be taxed if tax had been collected at the origin; to avoid double taxation.
The Committee passed the budget.
Buhari said some of the items which will be exempted from the VAT, in addition to the pharmaceuticals; educational items, and basic commodities already excluded by the VAT act; include brown and white bread, cereals, fish of all kinds, flour and starch meals.
Others are fruits, vegetables, roots (yams etc), herbs. salt, milk, meat and water.
Following approval of the bill by both chambers of the national assembly, the joint committees of the parliament will concur and subsequently send to Buhari for assent.