Ahmed Idris, Accountant-General of the Federation has disclosed that the implementation of 7.5% VAT rate began on Monday after President Buhari signed the 2019 Finance Act.
Speaking with newsmen, Idris said all payments whether incurred before or after the assent of the bill will attract the new 7.5% VAT rate
“In government, you don’t take an action unless there is an approval or legal instrument. No one can jump the gun. There must be a policy in place to back all actions. The budget cannot be implemented unless the National Assembly passes the Appropriation Bill and the President signs it into law.
“For instance, there was a decision (in the 2020 Budget) to increase VAT rate (from 5 to 7.5 per cent). The National Assembly debated on it. Members of the public were sensitized and informed about it. But, nobody could start deducting the 7.5 per cent until the National Assembly approved it and the President signed the Bill into law.
“On Monday the President signed the Finance Bill into law. And just yesterday (Tuesday), I saw a payment, which was prepared in December last year. When I checked the payment was on the VAT rate of 5 per cent. I said no.
“If I am to finalize the payment now, then the VAT rate must be 7.5 per cent. I stopped the payment and asked them to go and recharge the new VAT rate of 7.5 per cent. The payment for 5 per cent VAT has now been overtaken by event.
“That is that person’s luck. The law has to be obeyed. Otherwise, I can be queried for disobeying the law,”
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“Every payment, which for one reason or another could not be made before the coming into effect of the Finance Act, will now suffer 7.5 per cent charge for VAT, because that is the law as at today,” the Accountant-General stated
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