VAT collection: Governor Akeredolu makes bold statements that will annoy some politicians
- Akeredolu has revealed that any attempt to amend the constitution over VAT collection will fail woefully
- According to the Ondo state government, it was unconstitutional for the federal government to be sharing VAT
- The FIRS and some state governments are currently embroiled in a legal tussle over VAT collection
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Governor Rotimi Akeredolu of Ondo state has declared that any move by the Federal Inland Revenue Service (FIRS) to amend the constitution by including value-added tax (VAT) in the exclusive list will fail.
The governor disclosed this on Sunday, September 19. According to him, it was unconstitutional for the federal government to be sharing VAT, The Cable reports.
Recall that the FIRS and some state governments are currently embroiled in a legal tussle over VAT collection.
In fact, Rivers and Lagos state governments had enacted laws and called for decentralisation of collection, while some states want a centralised collection.
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Akeredolu, who also doubles as chairman of the southern governors’ forum, argued that VAT is under the purview of states.
According to him, the law does not give power to the FG to collect VAT and share it with the states.
“If by the grace of God, all of us, including the south and a few states in the north, can all agree, that amendment will be dead on arrival. There is nowhere in the southern house of assemblies that it will be approved. Why seek an amendment to the constitution when the provisions are so clear?”
North cannot keep challenging southern leaders over development of their people, Suleiman insists
In another report, Abdul-Azeez Suleiman, the spokesman for pan-Arewa organisation Coalition of Northern Groups has lambasted governors from the northern region over the economic backwardness of their respective states.
This spokesperson disclosed this while reacting to the governors' position on the Value Added Tax trouble between some southern states and the federal government.
According to him, the position of the northern governors who are aligning with the federal government is an indication that the governors have failed to move the region forward to a path of self sustainability.
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.