Governor of Akwa Ibom State, Udom Emmanuel, has explained that the decentralisation of value-added tax (VAT) collection will bring benefits to all the states across the country.
Rivers and Lagos State governments have been in a legal tussle with the Federal Inland Revenue Service (FIRS) over the collection of VAT.
Also, the Southern Governors’ forum revealed their support to the states who have enacted laws, decentralising the collection of consumption tax.
Speaking during a programme on Arise TV on Thursday, Udom stated that those opposing the decentralisation of VAT collection by states, lack the foresight to see the benefits it will bring.
He noted that the move made by the Rivers and Lagos States is in line with the rule of law, which he said will take its course in no distant time.
According to him, “If my brother states have gone to court, we are all one and in the same basket. All 36 states will not need to join at the same time. As of today, my brother in Rivers has gone far enough. I don’t rush to sign that into law. For now, let me allow the rule of law. Let’s allow the rule of law to take its course,” the governor said.
“Some states saying that this is not needed is probably because people don’t see the hidden treasure in VAT. There are so many things, and we’ve discussed this at so many fora.
“For example, If I sell a house in Uyo, and the value of the property is enhanced because of good roads, electricity and security that’s been provided by the state government and when VAT is taken out of that property, why shouldn’t that tax 100% come to me? Why should I take it to go and share?
“It’s the same thing everywhere, so those who are saying that VAT cannot favour everyone; it will favour every single state in this country. There’s no exclusion at all. Because it’s a consumption tax, and whenever there are human beings, there must be activities. And where there is activity, there must be consumption, and where there is consumption, VAT follows, which will lead to revenue.” he said
Meanwhile, the Federal Government has disclosed that the FIRS will continue to collect VAT following the ruling of the Court of Appeal on the matter.
Some states, including the Ebonyi state government, have also thrown their weights behind the FIRS, kicking against the development supported by their counterparts.
