Senate rejects VAT bill

A Bill which seeks to include Value Added Tax (VAT) on the Exclusive Legislative List was on Tuesday rejected by the National Assembly.

The Bill was rejected by the Senate and by implication the House of Representatives, during voting on 68 Constitution Review Bills proposed to it by the joint committee of Constitution review.

The Senate however voted to move issues concerning establishment and operation of railways, airports and the generation and distribution of power from the Exclusive Legislative List to the Concurrent List.

This implies that State Governments will now legislate on and collect VAT as well as establish and operate railways and airports.

They have also been empowered to generate and distribute power (electricity).

These Bills can only become law if they are passed by 24 out of the 36 State Houses of Assembly through simply majority and the Bills assented to by the President.