Senator Enyinnaya Abaribe, the minority leader of the Senate says the moves by Lagos and Rivers to take over collection of Value Added Taxes, VAT is a good development.
Abaribe in an interview with Punch insisted that there should be no controversy over the issue because no law empowered the FIRS to collect VAT in Nigeria.
Abaribe said, “There should not be any controversy. Rivers and Lagos states are right. VAT collection by FIRS is not in the constitution. Also, it affirms fiscal federalism which Nigerians have been clamouring for.
“Let states now put on their thinking cap and be creative in enhancing their revenue bases. It’s a good development.”
Also, George Sekibo, the Chairman of the Senate Committee on Navy, said southern senators would oppose FIRS’ request for an amendment to the constitution.
Sekibo who represents Rivers East in the National Assembly argued that the FIRS was going against the constitution and that its action would be null and void.
He said, “I know we are amending the constitution now, I dare the committee to bring it to the floor of the Senate, it will die because they will not get the required two-thirds to pass it.
“Even if they manage to get it at the National Assembly level, they will not get it at the state level and if we don’t support it in southern Nigeria, the FIRS proposal will die.”
Sekibo wondered why northern states could not collect tax on their cattle instead of depending on VAT realised from the sale of alcohol, when they see the product as a taboo.
“Every state specialises in different types of trade. In the North, there is nothing wrong if we can regulate the sale of cows and collect VAT on that and then use the proceeds to provide basic amenities for the people,” he argued.
He added, “The Federal Government has no business collecting VAT because it is not in the constitution (for them to do so). The issue of taxation is in the concurrent list and not on the exclusive legislative list.
“Most of the VAT payment comes from the sale of alcohol. In Rivers, for instance, VAT on alcohol is heavy. In Rivers and most of the southern states, people consume alcohol. You cannot generate VAT proceeds from alcohol and share it with people who even by their own religion condemn alcohol consumption.
“By collecting part of the proceeds from alcohol, are they not indirectly drinking alcohol? My thinking is that you abhor it, you don’t like it. You should not use money from it as well. It is a logical argument. The stand of Rivers and Lagos states on it is good for this country.”
