The Senate Committee on Finance says it will invite the Minister of
Finance and the Chairman, Federal Inland Revenue Service, (FIRS) to give
details on reasons for the proposed increase in Value Added Tax (VAT).
The Chairman of the Committee, Sen. Solomon Adeola, made the
disclosure in a statement issued by his Media Adviser, Mr Kayode
Odunaro, in Abuja on Thursday.
Adeola said the invitation was hinged on the proposed plan to increase VAT from 5 per cent to 7.2 per cent.
The Minister of Finance, Mrs Zainab Ahmed had after the Federal
Executive Council (FEC) meeting on Wednesday spoken on the proposed plan
to increase VAT.
Adeola, said the proposed increase in VAT had generated mixed
reactions among the public on its possible effects on living standards
and the economy.
“We are glad that the minister of finance indicated that the VAT act will have to be amended for the increase to take effect.
“But we are concerned about the current economic situation of the country as it affects the generality of the people,” he said.
The chairman said the interaction with the two key officials of
Federal Government would form part of the basis for possible amendments
of the VAT Act.