The Governor of Lagos State, Babajide Sanwo-Olu, has assented into law the bill seeking to empower the state to collect value-added tax (VAT).
According to the Commissioner for Information and Strategy, Gbenga Omotosho, Governor Babajide Sanwo-Olu, signed the “bill for a law to impose and charge VAT on certain goods and services” after arrived from an official trip to Abuja on Friday.
“By this act, the bill has now become a law,” he added.
The bill had scaled the first and second reading at the Lagos State House of Assembly.
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The Speaker of the House, Mudashiru Obasa, had stated during a plenary session that the VAT bill, when passed into law, would result in increased revenue stream for the state.
VAT is a form of tax levied on goods and services in which consumers of those products or services pay to the government. All goods and services —produced either locally or imported are taxable except those specifically exempted by the VAT Act.
The Federal Government increased VAT rate in 2020 from five percent to 7.5 percent.
