3% VAT to fund North East Development Commission

By: Michael Shuaibu

… North East people heavy consumers of alcohol – Senator Ndume

Following the presentation of the Committee report on North East Development Commission by Senator Sam Egwu (Ebonyi North) to the Senate on Tuesday, the Senate has settled to cite the Commission Headquarters in Maiduguri.

The report also indicated that 3% of Value Added Tax (VAT) be paid to the Commission’s vault for the next ten years to enable reconstruction as a result of wanton destruction of the zone by Boko Haram insurgents.

However, Senator Biodun Olujimi (Ekiti South) objected to VAT remittances on the ground that part of VAT is derived from alcoholic, which remains a banned substance in the North on religious grounds.

Reacting, Senate Leader Ali Ndume argued that VAT remittances should be sustained as recommended, saying the people in the North East Are ‘heavy drinkers’.

“My President, Distinguished Colleagues, even in the North East, they are heavy drinkers of alcoholic beverages and in a way they are also contributing to VAT. I therefore asked that the recommendations should be upheld”, Ndume said.

In his ruling, Senate while upholding the recommendations of the report referred it to Ad-hoc Committee with a mandate to report back in a week’s time.

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