Fiscal Federalism: VAT Bill Scales Through Second Reading In Ogun Assembly

The Ogun State Value Added Tax Law, 2021 Bill has scaled first and second readings on the floor of the House of Assembly.

The 26-member Ogun Assembly unanimously agreed that when operational, the bill would accord the State its rightful position as a viable federating unit.

The bill titled “H.B No. 73/OG/2021- A Bill for a law to impose and charge value added Tax on certain Goods and services, provide for the administration of the Tax and for related purposes,” received the support of the Assembly after the motion for the second reading was moved by the Majority Leader, Yusuf Sheriff and seconded by Ganiyu Oyedeji.

The House, through a voice vote, during plenary presided over by Speaker Olakunle Oluomo at the Assembly Complex, Oke-Mosan, Abeokuta, supported it.

In their contributions, Olakunle Sobukanla, Ganiyu Oyedeji, Adegoke Adeyanju and Abdul Bashir Oladunjoye – all underscored the needs for the enactment of the proposed law in the State as a federating unit to further improve revenue accruable to the State.

The lawmakers reckoned that VAT law will ensure a seamless funding of more developmental projects, lamenting the State often got a lesser share of what it contributed in VAT to the Federal Government.

In their submissions, Hon. Kemi Oduwole, Oludaisi Elemide, Solomon Osho and Olusola Adams explained that the bill was meant to improve on the State’s financial status through tax revenue generation.

Speaker Oluomo lauded his colleagues for their contributions to the bill and committed it to the Committee on Finance and Appropriation for further legislative actions.

He announced that the public hearing on the bill would hold on Thursday.