…Accuses Katsina Governor Of Conspiring To Truncate ‘Progressive Reality’
Governor Nyesom Ezenwo Wike has directed the Rives State Revenue Service (RSRS) to commence immediate collection of Value Added Tax (VAT) across the entire state in line with provisions of the Rivers State VAT Law 2021.
The Governor who gave the directive during a statewide broadcast in Port Harcourt on Monday, ordered the state revenue collection agency to ensure the full and total implementation and enforcement of the VAT law against all corporate bodies, business entities and individuals in the state, with immediate effect.
He explained that the directive was premised on the appeal filed by the Federal Government through the Federal Inland Revenue Service (FIRS) challenging the constitutionality and authority of the state to impose, collect and utilize VAT within its territorial jurisdiction.
“As we all know, following the recent judgement of the Federal High Court, Port Harcourt, which upheld the constitutional right and authority of State Governments to impose, collect and utilize value added taxes (VAT) within their respective territorial jurisdictions, the Rivers State Government enacted the Rivers State Value Added Tax Law 2021 to regulate the effective administration of VAT in Rivers State.
“As expected, the Federal Government, through the Federal Inland Revenue Service (FIRS), disagreed and filed an appeal coupled with a request for stay-of-execution of the judgment before the Federal High Court.
“While the appeal was pending and without any stay-of-execution of the subsisting judgement, the FIRS went about to bully corporate bodies and business entities from paying the VAT to the Rivers State Government even when they knew that an appeal does not serve as a stay neither was there anything to stay in a declaratory judgement”, Wike explained while condemning what he says is the effrontery and impunity exhibited by the FIRS against the Rivers State government while the appeal was pending.
Warning that the government was fully in-charge of the state, the governor said it would not tolerate further attempt by the FIRS to sabotage or undermine the authority of the state to freely administer its tax and other related laws in the State, adding “Those who play with fire risks having their fingers burnt. Enough of the shenanigans”.
He however advised all corporate bodies, business entities and individuals to willingly, truthfully and promptly comply with their tax obligations to avoid the full weight of the stipulated sanctions, including having their business premises sealed-up.
Governor Wike assured residents and those doing business in the state that government would make effective use of the expected proceeds from the VAT tax to accelerate the development of the state and improve the wellbeing of everyone.
“Naturally, some States with presently low economic activities and ethically restrictive social policies with economic implications may be adversely affected for now.
“Above all, fiscal federalism remains the right path to economic self-reliance and sustainability for all our States and the benefits derivable from this case by all the States in the long run far outweigh the immediate revenue loss that some States may presently suffer.
“All that is required is for all of us to wear our thinking caps as elected Governors to collectively fight for the greater devolution of resources, responsibilities and powers to the federating States.
“It is therefore very unfortunate that some State Governors led by that of Katsina State are vainly conspiring to truncate this progressive reality in favour of the inequitable status quo so that the Federal Government can continue to rob Peter to pay Paul as the nation’s self-imposed tax master-general”.
