Southern Govs insist on states collection of VAT, appraise Anti-Open Grazing Law compliance

 

  .Appeal Court declines Lagos, Rivers request to stop FIRS from collection

.As stakeholders laud Ogun Assembly on new VAT Bill

 

Cosmas Chukwu, Enugu and Michael-Azeez Ogunsiji

 

 

Governors of Southern States of Nigeria, under the aegis of Southern Governors Forum (SGF), have resolved to support the position that the collection of Value Added Tax, VAT, falls within the powers of the states.

 

The position is part of the 6 point communique of the Forum that met in Enugu State Government House, Enugu on Thursday.

 

The Nigerian Southern Governors Forum (SGF) had met to review the state of the nation and the progress of implementation of the decisions reached in her previous meetings.

 

Reading the communiqué to journalists after the closed door meeting,  the Governor of Ondo State and Chairman of the Forum, Oluwarotimi Akeredolu (SAN), said the meeting reaffirmed the Southern Governors commitment to fiscal federalism as resolved at the inaugural meeting of the forum held on Tuesday 11 May, 2021 at Asaba, Delta State.

 

According to him, the forum emphasized the need for the Southern States to leverage  on the legislative competence of their respective State Houses of Assembly, as well as representation in the National Assembly to pursue the  inclusion of fiscal federalism in the Nigerian constitution, through the ongoing constitutional amendment.

 

“The meeting resolved to support the position that the collection of VAT falls within the powers of the States.”

 

Akeredolu said the forum expressed satisfaction with the rate at which the States in the Southern Nigeria are enacting or amending the Anti- Open Grazing Laws which align with the uniform template and aspiration of the Southern Governors and encouraged the States that are yet to enact this law to do so expeditiously.

 

The governors, according to him, reiterated their earlier position that the next President of Nigeria must come from the Southern part of the  country in line with politics of equity, justice and fairness.

 

He stated that the forum resolved to encourage the full operationalisation of already agreed regional security outfits; which would meet, share intelligence and collaborate, to ensure the security and safety of the Southern region of Nigeria.

 

On the Petroleum Industry ACT (PIA), the chairman said the forum expressed satisfaction with the handling of issues around the PIA and ownership of Nigerian National Petroleum Corporation (NNPC) by the larger Nigerian Governors’ Forum.

 

The forum thanked the host Governor, Ifeanyi Ugwuanyi for the successful meeting and chose Rivers State as the next host for the Southern Governors Forum meeting in November, 2021.

 

Present at the meeting were the Governor of Rivers State, Nyesom Ezenwo Wike; Governor of Delta State, Dr. Ifeanyi Okowa; Chief Emmanuel Udom, Governor of Akwa Ibom State and Governor of Osun State, Isiaka Adegboyega Oyetola.

 

Others were the Governor of Enugu State, Ifeanyi Ugwuanyi; Governor  of Bayelsa State, Duoye Diri; Governor Babajide Sanwo-Olu of Lagos State and Governor Oluwaseyi Abiodun of Ogun State.

 

Oyo, Ekiti, Edo, Imo, Abia, Ebonyi States were represented by their Deputy Governors.

ABEOKUTA – Stakeholders in Ogun State have commended the State House of Assembly for introducing the proposed bill on the Ogun State Value Added Tax Law, 202.

 

Those who spoke at a stakeholders’ forum on the bill title “H.B. 073/OG/2021- A Bill for a law to impose and charge Value Added Tax on certain goods and services, provide for the administration of the tax and for related purposes” including the representatives of the State Chapters of Association of Nigerian Authors and the Guild of Public Affairs Analysts, Dr. Paul Oni, Committee for the Defence of Human Rights (CDHR), Yinka Folarin, Director of Industrial Promotion in the Ministry of Industry, Trade and Investments, Engr. Kehinde Akintomide and a former member of the Assembly, Hon. Habeeb Ajayi amongst others lauded the Assembly for the introduction of the bill.

 

They added that it was a clear indication that the institution remained sensitive, considerate and responsive to the yearnings of the people.

 

Calling for a review of the collectibles under VAT, the sharing percentage between the State and Local Government Councils, they sought for flexibility in VAT collection to encourage compliance and

sustainability, especially as it affected the small and medium scale businesses in the implementation of the law upon its passage by the Assembly and assent by the Governor.

 

Also, the Chairman, Board of Internal Revenue Service, Gbenga Olaleye, who called for amendment of the bill to include taxation of e-commerce and allied businesses in view of the introduction of digital technology to commerce, proposed a sharing percentage of 70% to the state and remaining 30% to local government councils.

 

Meanwhile, the Ogun State House of Assembly says the proposed State Value Added Tax Law, 202 remiains one of the initiatives of the Assembly being a progressive legislative institution poised towards achieving feasible fiscal restructuring in the country to further ensure equity and fairness in revenue sharing among the Federating units.

 

The Speaker, Rt. Hon. Olakunle Oluomo, disclosed this while declaring open a stakeholders’ forum on the bill held at the Assembly Complex, Oke-Mosan, Abeokuta.

 

Oluomo clarified that the proposed bill would ensure improved revenue to the State, as the revenue item was not listed in the exclusive list of nation’s constitution, hence the State had the right to collect Value Added Tax, the more reason the lawmakers as the true representatives of the people introduced the bill.

 

The Speaker noted that the South West Conference of Speakers was already putting in place more feasible modalities to enhance the collective development of the Southwestern States, with a view to further promoting effective service delivery and charting the path towards true fiscal federalism.

 

Assuring stakeholders of speedy passage of the bill, the Speaker noted that it had become imperative to improve the internally generated revenue of the State to aid the implementation of more socio- economic development in all parts of the State.

 

He noted that the State deserved far better than what it received from VAT through the Federation account, just as he equally canvassed for higher percentage in the sharing formula of revenue acruable from VAT to the Local Government Councils to aid grassroot development