VAT Battle: Why You Should Be Your Brothers’ Keeper, Umahi Sends Strong Message to Southern Governors
- Again, Governor Dave Umahi has stood his ground over the disagreement between some state governors and the federal government on VAT
- The Ebonyi state governor stated that he is not in support of the position of the southern governors on the collection of VAT by states
- Umahi noted that states would collapse should VAT collection be moved from the federal level to the subnational
Abakaliki, Ebonyi state - Dave Umahi, the governor of Ebonyi sate, has knocked his colleagues on the platform of the Southern Governors’ Forum over their resolution supporting the collection of the Value Added Tax by states.
The Punch reports that Umahi made this disclosure on Friday, September 17, during an interview on Channels TV.
Umahi said that Ebonyi won’t pursue VAT collection or implement the decision the forum made at a meeting in Enugu on Thursday, September 16.
Meanwhile, the Southern Governors’ Forum led by Governor of Ondo state, Rotimi Akeredolu (SAN), reading a communiqué at the end of a meeting had said:
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“The meeting resolved to support the position that the collection of VAT falls within the powers of the states.”
Umahi said a number of states would collapse should VAT collection move from the federal to the subnational.
He said it was not right that some states would “eat and have so much surplus and then some other states don’t have much to eat."
“We have to be our brothers’ keeper; we have to see how we can grow the economies of the weakest states, otherwise, we will breed insecurity in those states.”
It would be recalled that the governor of Osun state, Adegboyega Oyetola spoke about the outcome of the meeting on his social media page.
Governor Oyetola said that the southern governors unanimously supported the position and court ruling on VAT that assigned its collection to state governments.
Presidency reveals President Buhari’s final decision on VAT controversy
Earlier, the Nigerian presidency has said that President Muhammadu Buhari will respect the final verdict on the issue of Value Added Tax (VAT) as decided by the Supreme Court.
The presidential spokesman, Femi Adesina, made the disclosure while speaking during an interview on Arise TV.
Adesina noted that though the case may drag up to the Supreme Court, the Nigerian leader would respect the rule of law.
Hisbah destroys alcoholic products as southern states decides not to share VAT with northern states
Meanwhile, Legit.ng had earlier reported that 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.