Rivers State Governor, Nyesom Wike, has on Wednesday insisted on moving ahead with his plan to stop the Federal Government from collecting Value Added Tax (VAT) from the oil-rich South-South state.
VAT is a consumption tax paid when goods are purchased and services are rendered. It is charged at a rate of 7.5 per cent.
Wike, who said he does not care if heaven falls, insisted that Rivers money is not meant for “Abuja people” but for the development of his state.
The governor spoke at a stakeholders’ meeting in Port Harcourt, the state capital, while addressing Shell Petroleum Development Company and other representatives of oil companies and business owners in the state.
Prior to Wike’s statement, Federal High Court sitting in Port Harcourt in its judgment last month in a suit marked FHC/PH/CS/149/2020 held that the Rivers State Government had the powers to collect VAT within its territory.
Then, Federal Inland Revenue Service, on Monday, prayed the court to stay execution on the judgment.
However the presiding judge, Justice Stephem Pam, rejected the application, saying granting it would negate the principle of equity.
Toeing the path of Rivers state, a bill to empower Lagos state government to collect VAT scaled second reading in the state House of Assembly on Monday.
Speaking at the stakeholders’ meeting on Wednesday televised live on Channels TV and two other stations, Wike lamented about the injustice in the country saying Rivers generated N15bn in June 2021 but got N4.7bn while;
Kano produced N2.8bn in June but Kano also got N2.8bn. Sometimes you don’t want to believe these things exist.
The governor said he cannot continue to beg the Federal Government for what belongs to his state, stressing;
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.
Wike added;
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
He stressed;
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.
The governor warned the oil companies and business owners not to remit their VAT to FIRS but Rivers State Government, starting from September.
He explained;
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.
He added 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.
