{"id":84505,"date":"2021-09-20T13:31:19","date_gmt":"2021-09-20T12:31:19","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=84505"},"modified":"2021-09-20T13:31:19","modified_gmt":"2021-09-20T12:31:19","slug":"akeredolu-speaks-on-vat-collection-says-firs-move-to-amend-constitution-dead-on-arrival","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/09\/20\/akeredolu-speaks-on-vat-collection-says-firs-move-to-amend-constitution-dead-on-arrival\/","title":{"rendered":"Akeredolu speaks on VAT collection, says FIRS move to amend constitution dead on arrival"},"content":{"rendered":"<p>Governor of Ondo state, Rotimi Akeredolu has stated that the move by the Federal Inland Revenue Service (FIRS) to amend the constitution by including value-added tax (VAT) in the exclusive list will fail.<\/p>\n<p>This was made known on Sundayn by the Ondo state governor when he featured in an interview with Arise TV.<\/p>\n<p><span data-preserver-spaces=\"true\">Akeredolu said it was unconstitutional for the federal government to be sharing VAT.<\/span><\/p>\n<p>Recall that there were reports of moves<span data-preserver-spaces=\"true\">\u00a0by the revenue agency to demand the inclusion of VAT collection in the exclusive legislative list.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The FIRS and some state governments are currently embroiled in a legal tussle over <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/09\/20\/we-are-collecting-consumption-tax-not-vat-ondo-tells-residents\/\">VAT<\/a> collection. <\/span><span data-preserver-spaces=\"true\">Rivers and Lagos state governments had enacted laws and called for decentralisation of collection, while some states want a centralised collection.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While the Lagos state government is seeking to join Rivers in the suit, the matter is currently pending at the supreme court<\/span><span data-preserver-spaces=\"true\">.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Last week, the court of appeal directed states to maintain status quo on VAT collection pending the<\/span><span data-preserver-spaces=\"true\">\u00a0determination of an appeal filed by the FIRS.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Akeredolu, who also doubles as chairman of the southern governors\u2019 forum, argued that VAT is under the purview of states.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to him, the law does not give power to the FG to collect VAT and share it with the states.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe issue of VAT, looking at the constitution, is under the purview of the states. Southern governors have taken a decision to pursue fiscal federalism. I am a lawyer. This is not a tax that is under the purview of the federal government,\u201d Akeredolu said.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe attempt by the FIRS and others who are clamouring for amendment is a confirmation that it does not give them the power. So, they are seeking an amendment to the constitution.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cIf by the grace of God, all of us, including the south and a few states in the north, can all agree, that amendment will be dead on arrival. There is nowhere in the southern house of assemblies that it will be approved. Why seek an amendment to the constitution when the provisions are so clear?\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Akeredolu insisted that if the federal government want to collect VAT for states, it could only get a percentage of it.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cYou can only collect VAT on behalf of the states and hand their money over to them. You can only take percentage there for helping us to collect the money,\u201d he said.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In Nigeria, the revenue arising from VAT is shared among the three tiers of government based on the provisions of the VAT act such that 35% goes to the LGAs, 50% goes to state governments, while 15% goes to the federal government.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">On the anti-open grazing law, he said the southern governors would not rescind their resolve on the matter.<\/span><\/p>\n<p>He explained that the law was not targeted at anyone but meant to ensure the safety of lives and property.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Governor of Ondo state, Rotimi Akeredolu has stated that the move by the Federal Inland Revenue Service (FIRS) to amend the constitution by including value-added tax (VAT) in the exclusive list will fail. This was made known on Sundayn by the Ondo state governor when he featured in an interview with Arise TV. Akeredolu said [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":53262,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[16587],"tags":[7256,1180,1258,17648],"class_list":["post-84505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-exclusive-list","tag-firs","tag-rotimi-akeredolu","tag-vat-collection"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Akeredolu speaks on VAT collection, says FIRS move to amend constitution dead on arrival<\/title>\n<meta name=\"description\" content=\"Governor of Ondo state, Rotimi Akeredolu has stated that the move by the 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