The Federal Government may be set to lose a projected N8.36 trillion 2022 revenue if the controversy over the Value Added Tax (VAT) goes in favour of the states.
The revenue projection for 2022 is part of the three-year expenditure plan approved by the Senate yesterday.
In the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) passed yesterday, there is a projection of N2.26 trillion revenue target from VAT in 2022.
The Federal Government said yesterday it will seek a declaration from the Supreme Court to lay the VAT controversy to rest.
Attorney-General of the Federation and Minister of Justice Abubakar Malami stated this yesterday in New York. He is in President Muhammadu Buhari’s delegation to the ongoing United Nation General Assembly.
Speaking yesterday, Senate President Ahmad Lawan said the collection of VAT by the Federal Government would continue until there is a definite ruling by the Supreme Court granting state governments the right to collect VAT.
“One of our colleagues in his contribution mentioned that we should not include the VAT. I think there is nothing wrong with continuing with the VAT as part of our revenues because there is no final judgement yet.
“Therefore we should not confuse our system until there is such a very clear-cut definite judgement by the Supreme Court, we should go ahead with VAT as part of the revenue resources available to us,” Lawan said.
