The Governor of Ondo state, Rotimi Akeredolu, has said that the plot to add the collection of Value Added Tax (VAT) to the exclusive list by the Federal Inland Revenue Service (FIRS) would be a failure. ayokinews.com reports
Speaking during an interview with Arise TV, Akeredolu noted that the sharing of VAT by the federal government was unconstitutional.
Speaking further, Akeredolu stated that the collection and management of VAT was under the control of the state governments while making it known that the law does not give the Federal government the power to collect VAT and share to states.
Governor Akeredolu said, “The 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.
“The attempt by the FIRS and others who are clamoring for amendment is a confirmation that it does not give them the power. So, they are seeking an amendment to the constitution.
“If 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?”