State Assemblies Will Determine Fate of VAT Amendment Bill, Says Akeredolu

By Uche Mbah

If feelers from the Southern Governors’ Foruxm is anything to go by, the debate on Value Added Tax, VAT, at the National Assembly, will be an exercise in futility.

Southern governors, during their recent meeting in Enugu, capital of Enugu state, maintained the position that VAT must be collected by States and not the Federal Inland Revenue Service, a position that stemmed from the current controversies based on Court rulings.

Northern groups have, however, kicked against it, while the Federal Inland Revenue Service, FIRS, angrily took the case to the National Assembly to adjudicate and create enabling bills in their favor.

But a rumpus endured in the debate pitching Northern legislators against the Southern ones.

Reacting to the move, Chairman of Southern Governors’ forum, Rotimi Akeredolu, dismissed the move, insisting on its futility, saying the amendment sought by FIRS is “dead on arrival” and will be killed when it gets to the state Houses of Assemblies.

Akeredolu who spoke on a National  TV talk show  Sunday said it is not in line with the Law for Federal government to collect VAT.

Akeredolu is a Senior Advocate of Nigeria.

“The FIRS seeking for amendment is a confirmation that they don’t have the power. The amendment will be dead on arrival. Why seek an amendment to a constitution when the provision is so clear,” he said.

“If the Federal Government was to collect VAT for states, it can only get percentage which the federal government can decide to share at the FAAC.

“You can only collect VAT on behalf of the States and hand their money over to them. You can only take percentage there for helping us to collect the money.”

He applauded the Southern Governors who, according to him, aligned with the steps taken by the Nigeria Governors’ Forum to pursue the amendment to the Petroleum Industry Bill, PIB.