Why States Must Collect Its Own VAT: In June, Rivers Generate N15.1bn, Given N4.7bn, Lagos N46.4bn, Given N9.3bn But Kano Generate N2.8bn, Given N2.8bn – Governor Wike

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Rivers State Governor, Nyesom Wike in continuation for the enlightenment of the business community over the recent Federal High Court victory for the state to collect value added tax with the exclusion of Federal Government has revealed how officials of Federal Inland Revenue Service, FIRS attempted to use office of the Attorney General of the Federation and the National Assembly to amend the constitution of Nigeria to frustrate states from being the rightful government to collect VAT.

Governor Wike stated this today while speaking with members of the business community in Rivers State.

According to Governor Wike, Rivers State in June 2021 generated the sum of 15 billion naira as value added tax but Federal Government gave the state 4.7 billion naira out of it, adding, Lagos state generated 46.4 billion naira and was given 9.3 billion naira but Kano State generated 2.8 billion naira and the entire amount of 2.8 billion naira generated was given back to the state by Federal Government.

Governor Wike described the system of Federal Government collecting and sharing revenue generated from value added tax for states as an act of injustice in Nigeria.

Excerpts:

In June 15.1 billion naira was collected as taxes in Rivers State but 4.7 billion naira was given to Rivers State, 46.4 billion naira was collected from Lagos State and but Lagos was given N9.3 billion naira.

Kano generated 2.8 billion naira and got 2.8 billion naira.

Have you seen the injustice in this Country ? I would not be Governor forever, it’s not about me but about the system.

Let the right thing be done.

We filed the Value Added Tax (VAT) collection action against FIRS and the office of the Attorney General representing the Federal Government in 2020.

In July 2021 the Chairman of FIRS wrote to the National Assembly through the Office of the Deputy Speaker of the House of Representatives to ammend the Constitution and empowered the Federal Government to collect VAT. They knew what they were doing was unconstitutional so in July 2021 they wrote a letter for the constitution to be amended to Include VAT in the exclusive legislative list.

This was exactly what we were challenging in court so they tried to include it through the back door. Corruption is not only people collecting money, corruption is also doing things illegally.