JUST IN: Northern Governors, Monarchs Meet, Flays South Over Legislation To Withhold ‘Value Added Tax’

The governors of the 19 monolithic North has deliberated on the controversy on the collection of Value Added Tax (VAT) on which Lagos and Rivers States have made laws with other States on course to pass the same laws.

The statement read by the Chairman of Northern Governors Chairman, Simon Lalong;

“As responsible leaders, while we are constraint by the fact that the matter is subjudice, we however for the purposes of educating the public make the following observations:

“The judgement of the Federal high Court calls to question the constitutionality of VAT, withholding tax, education tax, Niger Delta Development Commission, National Information Technology Development Agency, 13% derivation, National Economic Development Council and many other currently levied and collected by the Federal Government of Nigeria, Federal Inlands Revenue Service.

“Rivers and Lagos State Governments had enacted their own VAT laws and the Southern Governors Forum have expressed support for this course of action;

“VAT is being confused by these State Government as a sales tax. If every state enacted its own VAT Law, multiple taxation will result in increases of prices of goods and services and collapsed in interstate trade. VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer;

Another confusion is ignoring observation above and its ‘overall effect’. The reason Lagos account for our 50% VAT collection is because most of the telecommunication companies, banks, manufacturing and other trading activities have their headquarters in Lagos with the resultant and wrongful attribution of VAT

“Until and unless the Supreme Court pronounces judgement on the substantive matter between Rivers State and Federal Government, the matter is sub judice and Northern States Governors Forum would respect this,” the statement said.