…as he warns oil companies
As the war over the collection of VAT in Nigeria rages, Rivers State Governor, Nyesom Wike, on Wednesday, vowed that he was bent on stopped the Federal Government from collecting a dime in the form of the Value Added Tax from the state.
We spoke in Port Harcourt at a meeting with oil companies operating in Rivers State, declaring that the state’s money was not meant for “Abuja people” but for the development of his state”.
“I don’t care if heaven falls,” the governor said.
Those he addressed were representatives of Shell Petroleum Development Company, other oil and gas companies as well as other companies operating in the state.
At the Wednesday meeting, which was aired live on at least three television stations, including Channels TV, the governor carried over what he called the injustice in the country.
According to Wike, while Rivers generated N15bn in June 2021 but got N4.7bn, “Kano produced N2.8bn in June but Kano also got N2.8bn. Sometimes you don’t want to believe these things exist”.
He said he cannot continue to beg the Federal Government for what belongs to his state.
“People say that let heaven not fall but sometimes I believe that heaven should come down so that everybody will rest…When we do the right thing, heaven is at peace. So, the right thing must be done at all times,” the governor noted.
“Rivers State is challenging FIRS from collecting VAT in Rivers State. I am not challenging FIRS from collecting VAT in Abuja. Let it be understood. But the law says Rivers must collect VAT in the state.”
“The Federal Government surreptitiously lobbied to amend the constitution to place VAT collection under the exclusive legislative list,” said the governor, who is a lawyer.
“We have challenged it and we have no apologies to anybody.
“I don’t want to be in the good book of anybody but in the good book of God.
“You don’t bully a state like us. FIRS should be very careful. I have the political will to do a lot of things. If they continue to bully us, I will take all their offices in the state,” he stated.
The governor warned the oil companies and business owners not to remit their VAT to FIRS but the Rivers State Government.
“I don’t want you to fall prey of the people who think they can use force to take our money.
“If you want to take advantage and say you don’t know who to pay to, it is a lie, you know.
“From this September, we will start collecting our VAT.
“We will not look back but seal up the premises of such companies,” the governor warned, stressing 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.
A Federal High Court in Port Harcourt recently ruled in a suit brought about by the Rivers State government, the Rivers State Government had the powers to collect VAT within its territory.
That ruling did not go down well with the Federal Inland Revenue Service, which subsequently asked the court to stay execution on the judgment.
But the presiding judge, Justice Stephen Pam, rejected the application, saying granting it would negate the principle of equity.
On Monday, the Lagos State Government toed the path of Rivers State as a bill to empower it to collect VAT scaled second reading in the state House of Assembly.
VAT is a consumption tax paid when goods are purchased and services are rendered. It is charged at a rate of 7.5 percent.
