Value Added Tax: My Case Against Buhari—-Nyesom Wike

<p><em>Value Added Tax crises<&sol;em><&sol;p>&NewLine;<p><strong><a href&equals;"https&colon;&sol;&sol;punchng&period;com&sol;">OpenLife Nigeria<&sol;a><&sol;strong> reports that governor Nyesom Wike of Rivers State&comma; now dubbed the leading apostle of the much talked about restructuring who has led a Value Added Tax&comma; VAT&comma; war against the federal government which is a critical segment of true federalism&comma; has accused President Muhammadu Buhari of bias and injustice&period;<br &sol;>&NewLine;VAT is a consumption tax paid when goods are purchased and services are rendered&period; It is charged at a rate of 7&period;5 percent&period;<br &sol;>&NewLine;Earlier&comma; the Federal High Court sitting in Port Harcourt in its judgment last month in a suit marked FHC&sol;PH&sol;CS&sol;149&sol;2020 held that the Rivers State Government had the powers to collect VAT within its territory&period;<br &sol;>&NewLine;The Federal Inland Revenue Service&comma; on Monday&comma; prayed the court to stay execution on the judgment&period;<br &sol;>&NewLine;But the presiding judge&comma; Justice Stephen Pam&comma; rejected the application&comma; saying granting it would negate the principle of equity&period;<br &sol;>&NewLine;On Monday&comma; the Lagos State Government toed the path of <a href&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;">Rivers State<&sol;a> as a bill to empower it to collect VAT scaled second reading in the state House of Assembly&period;<br &sol;>&NewLine;Reacting on Wednesday&comma; Wike said&colon;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;In June N15&period;1bn was collected as taxes in Rivers State but N4&period;7bn was given to Rivers State&comma; N46&period;4bn was collected from Lagos State but Lagos was given N9&period;3bn&period; Kano generated N2&period;8bn and was given N2&period;8 billion&period; Have you seen the injustice in this country&quest; I will not be Governor forever&comma; it&&num;8217&semi;s not about me but about the system&comma;” he lamented&period;<&sol;p>&NewLine;<p>The governor has insisted on going on with his move to stop the Federal Government from collecting Value Added Tax from the oil-rich South-South state&period;<br &sol;>&NewLine;Wike&comma; while addressing Shell Petroleum Development Company and other representatives of oil companies and business owners in the state&comma; said he does not care if heaven falls&comma; saying Rivers money is not meant for &OpenCurlyDoubleQuote;Abuja people” but for the development of his state&period;<br &sol;>&NewLine;He has however threatened to shut FIRS offices in Rivers if the bullying continues<br &sol;>&NewLine;The governor warned the oil companies and business owners not to remit their VAT to FIRS but the Rivers State Government&period;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;I don’t want you to fall prey to the people who think they can use force to take our money&period;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;If you want to take advantage and say you don’t know who to pay to&comma; it is a lie&comma; you know&period;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;From this September&comma; we will start collecting our VAT&period;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;We will not look back but seal up the premises of such companies&comma;” Wike warned&comma; adding that the state does not need the Nigeria Police Force to enforce the collection of VAT but would use the state-created security outfit backed by the law&period;<&sol;p>&NewLine;