The Akwa Ibom State government has joined other states clamouring to collect their own Value Added Tax (VAT).
Governor Udom Emmanuel insists that states are entitled to collect VAT.
The governor, an ex-banker, spoke on Arise TV News ‘Morning Show’ aired to mark the state’s 34th anniversary.
According to him, it is wrong for the Federal government to collect and share revenue from VAT because it is generated from businesses transactions in the states.
The Minister of Finance, Zainab Ahmed, had on Thursday asked all taxpayers to continue remitting VAT to the Federal Inland Revenue Service (FIRS).
She disclosed in an advertorial: “The ruling of the Court of Appeal employs all taxpayers in all the states to continue to collect VAT on behalf of the government in compliance with the VAT Act.”
However, Governor Udom explained that despite the huge oil and gas investments in the State, Akwa Ibom receives a paltry N2 billion from VAT.
He backed his Rivers and Lagos states counterparts, Nyesom Wike and Babajide Sanwo-Olu, both of whom have already signed their respective VAT bills into law.
Emmanuel said: “If my brother state has gone to court, it is the same principle that we stand on. I think we are all in the same bucket, the same basket.
“All the 36 states do not need to join at the same time. Today my brother in Rivers State has gone far enough.
“I think the case has gone to the Appeal Court and there is also a stay of execution.
“Let me allow the rule of law. But for states saying they do not need VAT, maybe they do not know the hidden treasure in VAT.
“If today I sell a house in Uyo, or any other person sells a property, the value is enhanced because of the good roads, electricity, security and water I have created, and the value I have added to the property. Why should the VAT on the property not come to me 100 per cent?
“Just look at the money I have spent on capital projects in the first quarter put at N143 billion, if you take 7.5 per cent of that, why should all not come to me?,” the governor asked.