Governor of Ebonyi State, David Umahi, says the state will stick to the collection of value-added tax (VAT) by the Federal Inland Revenue (FIRS).
Gatekeepers News reports that Governor Umahi says Ebonyi state is not in support of Lagos, Rivers, and other states’ bid to collect value-added tax (VAT).
He added that Ebonyi would continue to stick to Federal Inland Revenue (FIRS)’s subsequent distribution among the 36 states of the federation.
There has been a controversy around VAT collection between FIRS and state governments after Federal High Court in Port Harcourt issued an order restraining the FIRS from collecting VAT and Personal Income Tax (PIT) in Rivers State.
Following this, the court of appeal in Abuja directed Rivers and Lagos to maintain the status quo (to maintain the situation as it existed before), pending the determination of an appeal filed by the federal tax authority.
Earlier on Wednesday, Gatekeepers News reported that Rivers State has asked the Supreme Court to set aside the order of the appeal court.
The Governor of Ebonyi State, while reacting to the VAT dispute at a state dinner organised in honour of the former Chief of Army Staff and Nigerian Ambassador to the Republic of Benin, Tukur Buratai, said that true federalism should be administrative restructuring.
Umahi said, “Evil will continue to thrive if good people keep quiet, we must make Ebonyi State very exceptional by rising to the challenges.
“When we shout true federalism, I say, I agree; but it should be administrative restructuring.
“Ebonyi state is not in support of any state collecting VAT. We are in support that FIRS should continue to collect tax and share.”
He, therefore, urged leaders to speak up against dissenting voices that are capable of polarising the nation.
Earlier, Gombe State Government has also called on Lagos and Rivers governments to reconsider their resolution on collecting value-added tax (VAT) in their states.
