05/09/2021
*FG, North Disagree As Lagos, Rivers Begin VAT Collections*
https://afamnews.com/2021/09/05/fg-north-disagree-as-lagos-rivers-begin-vat-collections/
[05/09, 10:15] Ismail Holdings:
VAT WARS BETWEEN THE FEDERAL GOVERNMENT AND THE STATES: One may look Development in Rivers and Lagos States, (To start with) Collection of VAT, as an affront to the Fed. GOVERNMENT. I beg to disagree, the ruling of Justice S D Pam on VAT is the revolutionary stance on shifts, Nigeria has been waiting for. The ice on the Cake next level developmental Paradigm shifts is what that Judgment represents. States have cultivated the Spoiled Child mentality, for as long as 52 Years, for those States created in 1969. Wait for 30 days and go to Abuja, collect money, figures, not known. The circle continues "har ma sha Allahu", most States have neglected all revenues platform available in their States, they have not developed businesses, have not revolutionalised the collection of IGR, or where collected is mismamaged because of Federal Allocation. The collection of VAT by Federal Government and then shares it to the State is disingenuous and archaic survival model. Let States developed their infrastructural bases enough to attract businesses into the States from where Consumption Tax would sufficed. This system would act as the badly needed catalyst ever neglected. Just watch the competition that would start now, realising that, the more ingenious you are the more collection you make, and also the Populace would equally have a fairly understanding of the incomes and again the apparatuses of collection would be seriously monitored to disallow revenue leakages. Though, all federal Government agencies cannot & should not pay VAT to States, because the developed infrastructural bases wherefrom the revenues derived was Federal Funds. Like NPA, SEAPORTS, RAILWAYS, NNPC etc cannot pay VAT to States. Generally, it's a wonderful development as the States will wake up. The complications here would be argued on the basis of security intervention by the federal Government for States that are bein overwhelmed by insecurity, there will be some complications here. In any case, States need toove away from the completely dependent on allocations from the Federal Government. The Federal Government on it's part should introduce measures to stimulate States into thinking self sufficiency. Accessing the federation accounts should be on the basis of States showing resilience towards that. Any State that has used it's allocation wisely 8n addition to self sufficiency effort should be granted some benefits. States that are willing to remain like their traditional enclaves should be left as such. With all the huge collections, go to some States, the pre-colonial roads still adorn City Centres.
Spread the loveThe governments of Lagos and Rivers states have expressed their readiness to begin the collection of Value Added Tax in accordance with the judgement of a Federal High Court in Port Harcourt, which ruled that states, and not the Federal Inland Revenue Service, should be collecting VAT...