BusinessTaxationWhy VAT Should Be Decentralised – Akwa Ibom Governor

Udom Emmanuel, governor of Akwa Ibom State, has said the decentralisation of value-added tax (VAT) collection will be beneficial to every state in the country.

He made his stand public on Thursday when he featured on an Arise TV programme.

According to him, those against the decentralisation of VAT collection can’t envision its hidden potential.

Udom opined that the decentralisation of VAT collection will favour every single state in the country.

“If my brother states have gone to court, we are all one and in the same basket. All the 36 states will not need to join at the same time. As of today, my brother in Rivers has gone far enough. I don’t rush to sign that into law. For now, let me allow the rule of law. Let’s allow the rule of law to take its course.

“Some states saying that this is not needed is probably because people don’t see the hidden treasure in VAT. There are so many things, and we’ve discussed this at so many fora.

“For example, If I sell a house in Uyo, and the value of the property is enhanced because of good roads, electricity and security that’s been provided by the state government and when VAT is taken out of that property, why shouldn’t that tax 100% come to me? Why should I take it to go and share?

“It’s the same thing everywhere, so those who are saying that VAT cannot favour everyone; it will favour every single state in this country. There’s no exclusion at all. Because it’s a consumption tax, and whenever there are human beings, there must be activities. And where there is activity, there must be consumption, and where there is consumption, VAT follows, which will lead to revenue,” the governor said.

The Federal Inland Revenue Service (FIRS) has been in a legal tussle with Rivers and Lagos state governments over VAT collection in the past few weeks..

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Beloved John (Staff Writer)

Writer and reporter-researcher, John Beloved is a self-motivated and creative Journalist with a commitment to quality writing and investigation. She accumulatedher professional skills and experience working for over 3 years as a content creatior and communication management. She holds a B.Sc. Education (Political Science) from the Obafemi Awolowo University, Nigeria.

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