VAT: Is Exclusion Of Rivers State From Loan Beneficiaries A Warning To Other States?

Shortly after Governor Nyesom Wike of Rivers signed a bill into law granting the state complete autonomy over Value Added Tax (VAT) collection, it appears the Federal Government may have kicked back on this action by excluding the state from beneficiaries of its new planned loan. This comes after the FIRS lost a legal battle with the Governor, over the right to collect VAT in the state in the Federal High Court of Port Harcourt. However, the suit has been taken to the Supreme Court at Abuja for final adjudication.

The problem arose when Governor Wike compared the money generated by Rivers state to what it gets back by way of allocation. According to a report by the Vanguard Newspaper, his state generated over 90 billion Naira between January to August, while receiving only about 46 billion in return. That amounts to roughly half of the total revenue, causing the Governor to feel cheated. On the other hand, a northern state like Zamfara generated only about...Keep Reading For More Details..>>>>N

Share to others

0/Post a Comment/Comments