….Oppose Lagos, Rivers on VAT
The governors of the 19 northern states rose from their emergency meeting in Kaduna on Monday, with the unanimous rejection of recent moves by Rivers and Lagos States to have states collect the Value Added Tax in the country.
The northern governors also rejected the clamour by the south to have the presidency return to it in 2023 after President Muhammadu Buhari’s two terms.
They spoke in a statement titled, ‘Resolutions Of The Northern States Governors’ Forum Meeting With Northern States Emirs And Chiefs Held On Monday 27th September 2021’.
Summing their position on VAT, the northern governors said their 17 southern counterparts were confused about the collection of Value Added Tax.
“VAT is being confused by these state governments as a sales tax. If every state enacted its own VAT Law, multiple taxations will result in increases in prices of goods and services and collapse in interstate trade. VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer,” they said in the communique.
“Another confusion is ignoring observation above and its “overall effect”. They argued that the reason Lagos accounts for our 50% Vat collection is that 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 judgment on the substantive matter between Rivers State and Federal Government, the matter is subjudice and Northern States Governors Forum would respect this.”
They argued that if every state imitates Lagos, Rivers on VAT, there would be multiple taxations, a rise in prices of goods and services, and a collapse of inter-state trade.
They were also of the opinion that the said states were mistaking sales tax for VAT.
The 19 governors also expressly rejected the demand for a rotational presidency.
The statement said: “The Forum observed that some Northern States Governors had earlier expressed views for a power-shift to three Geo-Political Zone in the South with a view to promoting unity and peace in the Nation. Notwithstanding their comments, the Forum unanimously condemn the statement by the Southern Governors Forum that the Presidency must go to the South.
“The statement is quite contradictory with the provision of the Constitution of the Federal Republic of Nigeria (1999) as amended that the elected President shall:- score the majority votes; score at least 25% of the votes cast in 2/3 States of the Federation.
“In the case of run-up simple majority win the election,” the communique said.
