Hisbah Destroys Alcoholic Products as Southern States Decides Not to Share VAT with Northern States

• Over 5,760 cartons of beers were confiscated by Kano State Hisbah Board amid faceoff between Southern and Northern states
• Hisbah destroyed the products at a period some states have decided not to share their VAT on beer and other consumable products
• Lagos State and Rivers have signed the value added tax bill that will see them enforce demand and collection of taxes previously obtained by Federal Government

Kano State Hisbah Board has continued to confiscate alcoholic products produced in other states and distributed to the region as Southern governors move to deny northern states Value Added Tax (VAT).

The Sharia-backed state police reiterated that it won't allow the distribution or sales of alcoholic products as it goes against its religious tenet which frowns against intoxication.

The activities of Hisbah has prevented beer producers from making gains in northern Nigeria, and also causes revenue loss for no-trade and offpro-trade businesses operating in the Islamic.

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What Hisbah said about beer production

According to the Public Relations Officer of Hisbah, Lawan Ibrahim-Fagge, in Kano:

“Hisbah board has prohibited sale of beer in the state to avoid being intoxicated."

During the recent crackdown on sales of alcohol, Hisbah officials destroyed 5,760 cartons of beers which was conveyed by two vehicles on Kano/Madobi road.

Ibrahim-Fagge said the vehicles were seized early Wednesday by Hisbah officials.

Southern states no longer wants to share vat on beers, others

The destruction of the beers comes at a period some Southern governors have decided to stop sharing their states revenue, stating that each region should generate their own income.

There have been debates as to why some states don't allow the sales of some products like alcoholic items, but still earning from the VAT collected by other states that allowed the business to operate.

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Alcoholic products are produced in Southern states, but VAT on the products are given to the Federal Government, which in turn shares it among all states.

Rivers State has challenged the FG and its agency, Federal Inland Revenue Service (FIRS), stating that only the state has the right to demand and collect VAT on non-import products, including beer.

Lagos State has also joined the lawsuit, and signed the VAT bill into law, to ensure its state tax agency takeover collection of VAT - Rivers State have also done same.

Southern States taking action against open grazing

In related state news, Legit.ng had reported that Lagos State governor, Babajide Sanwo-Olu, signed the anti-open grazing bill into law today.

Eleven Southern States in Nigeria had agreed to sign the bill to prevent the movement of cattle rearers across their region, which has led to bloodshed and property loss.

Farmers have been complaining about the unrestricted movement of cattle rearers, who have been told to purchase or rent a land for their operation.

Source: Legit.ng