Gov Akeredolu says the governors affirmed that the collection of VAT falls within the powers of state governments.
Governors of the southern states have expressed support for the collection of Value-Added Tax by state governments.
Ondo State Governor, Rotimi Akeredolu announced this while reading a communique at the end of a meeting of the governors on Thursday, September 16, 2021, in Enugu.
Rivers and Lagos state governments had recently called for decentralisation of VAT collection and also enacted laws to give it legal backing, but the Federal Inland Revenue Service (FIRS) rejected the move and also threatened to deal with businesses that pay their VAT to state governments.
Akeredolu maintained that the governors affirmed that the collection of VAT fell within the powers of state governments.
He said, “We resolved to support the position that the collection of VAT falls within the powers of the state.
“The meeting reaffirmed its earlier commitments to fiscal federalism and emphasised the need to pursue its inclusion in the Nigerian Constitution through the ongoing constitutional amendment.’’
Akeredolu also urged southern states to leverage the competence of their houses of assembly and representation at the national assembly to pursue the goal.
The governor further said, “The meeting expressed satisfaction with the rate at which states in the south of Nigeria are amending or enacting the anti-open grazing law.
“This aligns with the uniform template and aspiration of governors in the south and we encourage the states that have yet to enact the law to do so expeditiously.
“The meeting agreed to encourage the full operationalisation of the already agreed regional security which will share intelligence and collaborate toward the safety and security of the region.
Some of the governors at the meeting were Ifeanyi Ugwuanyi, governor of Enugu, Nyesom Wike, governor of Rivers, Emmanuel Udom, governor of Akwa Ibom, Babajide Sanwo-Olu, governor of Lagos, and Ifeanyi Okowa, governor of Delta.
Others were degboyega Oyetola (Osun), Douye Diri (Bayelsa) and Dapo Abiodun (Ogun).
