The Presidency Has No Powers To Increase “Vat” In Nigeria. – TheNigerialawyer

Daily Law Tips (Tip 426) by Onyekachi Umah, Esq., LLM.
ACIArb(UK)

*THE PRESIDENCY HAS NO POWERS TO INCREASE “VAT” IN
NIGERIA.*

Government and government affairs must be conducted within the
laws of NIGERIA.
Value Added Tax (VAT) is a tax created by the National Assembly,
payable only on some specific goods and services at the rate of 5%
of the value (cost) of the goods/services.

VAT is created by (the Value Added Tax Act) a statute of
National Assembly and not a mere executive order, policy or
directive. Like any other law made by the National Assembly, the
Value Added Tax Act (VAT Act) and it’s provisions cannot be
altered, modified, changed, amended or compromised by the executive
arm of government. It is only the National Assembly that can amend
the VAT Act and its provision. The VAT Act specifies the rate of 5%
for VAT and did not give any discretion to Federal Inland Revenue
Service (FIRS), the Presidency or any person/body to increase or
reduce the 5% rate. So, the presidency must approach the National
Assembly for an amendment of the VAT Act before there can be an
increase from the 5% rate of VAT and not by executive directives or
orders.

My authorities are Sections 1, 4, 46 and 47 of the Value Added
Tax Act, 1993.

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