85% VAT going to states, LGAs –Fashola

The Minister of Works and Housing, Babatunde Fashola, has said that 85 per cent of the Value Added Tax to be raised in the 2020 budget will go back to the states and local governments areas to take care of salaries and infrastructure investment.

According to him, the remaining 15 per cent will go to the Federal Government for the development of infrastructure.

The minister, who disclosed this in a statement issued by the Federal Ministry of Works and Housing in Abuja on Thursday, described the 2020 appropriation bill as pro-people and pro-state.

He stated that the bill would drive development of the states and enhance the well-being of citizens, as he charged the general public to look more at the content of the bill rather than the numbers.

Fashola therefore stressed that the bill would grow the economy, raise money and not hurt people through unfavorable tax regimes. Copyright PUNCH.

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