Southern Governors support collection of VAT by States

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Governors from the Southern region of the country who met today September 16 in Enugu, have expressed support for the collection of value-added tax (VAT) by state governments.

This was made known via a communique read out by Governor Rotimi Akeredolu of Ondo state at the end of the meeting.

Akeredolu who is chairman of the southern governors’ forum, encouraged Governors in the region to leverage the competence of their houses of assembly and representation at the national assembly to pursue the goal.

The communique read in part:

“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.”

The Governors stated that collection of VAT by the state governments would go a long way in boosting their economic growth and development, unlike when the Federal Inland Revenue Service(FIRS) has the responsibility of collecting VAT which goes into the coffers of the federal government.

“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,” Akeredolu said.