Falana slams FG over VAT increase, says it’s illegal

Ukpono Ukpong

A Senior Advocate of Nigeria, Femi Falana, has said that the recent increment of Value-added tax from 5per cent to 7.5per cent by the Federal Government is an act of illegality as the Federal Executive Council lacks such constitutional powers.

Falana told Daily Times in Abuja that under a democratic dispensation there can be no taxation or increment in taxation of any kind without legislation.

While blaming the National Assembly for erring by inviting the Minister of Finance and the Executive Chairman of Federal Inland Revenue Service (FIRS) to come and clarify on issues of VAT increment, he maintained that the President had to have presented it by way of money bill for it to be passed into law.

“It’s illegal. Under a democratic dispensation you cannot impose tax or increase tax without a law made by the National Assembly or the State Assembly as the case may be.

“In this case, it has to be realized that we are not under the military dictatorship.
By virtue of section 59 of the Nigerian Constitution, any increase in levy or tax will have to be presented to the National Assembly by way of money Bill by the President to be passed to law.

“The Senate erred the law by inviting them to come and clarify. Recall that the National Assembly invited the Minister of Finance and the FIRS to come and clarify. The NASS must insist on its powers under Section 59 to pass a law for increase in  VAT or any tax.

“There can be no taxation without Legislation. The Federal Executive Council has no power under the Constitution to increase VAT or any tax in the country.” Said Falana