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Despite the court of appeal restraining the state from collecting VAT directly, Lagos state governor Babajide Sanwo-Olu has signed into law the State VAT Bill as passed by the House of Assembly.

In a short statement by the state commissioner of information & strategy, Gbenga Omotosho, the Governor signed the “bill for a law to impose and charge VAT on certain goods and services” at about 11.45am on Friday, after returning from an official trip to Abuja . By this act, the Bill has now become a Law.”

It would be recalled that the state house of assembly had yesterday passed the bill and asked the governor to accent it to become law.

In last few days, Rivers and Lagos states government have been in running battle with the federal government of Nigerian on who has the legal right to collect VAT in the state.

However, Rivers state governor, Nyeson Wike being a lawyer himself had said there is not going back on the issue as he is prepared to fight the federal government over the issue up till supreme court.

Consumers pay VAT when they purchase goods or obtain services. All goods and services โ€” produced within or imported into the country โ€” are taxable except those specifically exempted by the VAT Act.

The VAT rate was raised in Nigeria from five percent to 7.5 percent in 2020.

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