The Northern Governors’ Forum has categorically said until and unless the supreme court pronounces judgement on the substantive matter between Rivers state and Federal Government on the issue of Value Added Tax, the matter is sub Judice and the forum will respect this.
Chairman of the Forum, Rt. Honourable Simon Lalong stated this after a long hour meeting at Sir Kashim Ibrahim House.
According to him, the forum consider the ongoing national debate on the collection of VAT important and said there is a need to educate the public on the issue.
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In view of this, Lalong explained that the judgement of the Federal High Court calls to question the constitutionality of VAT, Withholding Tax, Education Tax, Niger Delta Development Commission, National Information Technology Development Agency, 13% derivation, National Economic Development Council and many other currently levied and collected by the Federal Government of Nigeria, Federal Inlands Revenue Service.
He further explained that Rivers and Lagos State Government had enacted their own VAT laws and the Southern Governors Forum have expressed support for this course of action.
“VAT is being confused by these State Government as a sales tax. If every State enacted its own VAT Law, multiple taxation will result in increases of prices of goods and services and collapsed in interstate trade. VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer.”
“Another confusion is ignoring observation above and its “overall effect”. The reason Lagos account for our 50% Vat collection is because most of the telecommunication companies, Banks, manufacturing and other trading activities have their headquarters in Lagos with the resultant and wrongful attribution of VAT.”
“Until and unless the Supreme Court pronounces judgement on the substantive matter between Rivers State and Federal Government, the matter is sub judice and Northern States Governors Forum would respect this.”
