Lagos State Governor, Babajide Sanwo-Olu, has signed the state Value Added Tax Bill into law.
The state Commissioner for Information and Strategy, Gbenga Omotoso, announced this in a statement released on Friday.
“The Governor signed the bill for a law to impose and charge VAT on certain goods and services at about 11. 45am today, after returning from an official trip to Abuja. By this act, the Bill has now become a Law,” the statement read.
Consequently, Lagos State Internal Revenue Service (LSIRS) has been empowered to administer and implement the law and account for money collected in accordance with the law.
The law further states that revenue accruing from VAT would be shared on a ratio of 75 per cent to 25 per cent between the state government and the Local Government Council Areas.
Lagos State has now become the second state, after Rivers State, to have a VAT law that empowers it to collect the tax despite an ongoing legal tussle between Rivers State and the Federal Inland Revenue Service (FIRS).