Victor EzejaNORTHERN governors have opposed state collection of Value Added Tax (VAT), a position supported by their southern counterparts.
The Governors under the auspices of Northern Governors Forum (NGF), also rejected the principle of zoning or rotational presidency, stating that it is against the constitution of the country.
This was contained in a statement issued by Chairman of NGF and Plateau State Governor, Simon Lalong, after the forum’s meeting on Monday in Kaduna.
The issue of VAT has been a raging battle between some states in the South and the Federal Inland Revenue Service (FIRS) who has been collecting the tax in all states all cross the federation on behalf of federal government.
Lagos and Rivers States have made laws enabling colecction of VAT following a High Court judgment at Port Harcourt in favour of Rivers.
The northern states governors deliberated on the controversy on VAT and said, “As responsible leaders, while we are constrained 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 percent derivation, National Economic Development Council and many other currently levied and collected by the Federal Government of Nigeria, Federal Inlands Revenue Service (FIRS).
“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 subjudice and Northern States Governors Forum would respect this,” the statement reads.
On the issue of rotational presidency between North and South in the country, governors stated that though some governors in the North had advocated in favour of that principle, they stand to oppose it on the ground that it contradicts constitutional provisions for election of president.
The forum said, “some Northern State Governors had earlier expressed views for a power-shift to the three geo-political zones in the South with a view to promoting unity and peace in the nation.
“Notwithstanding their comments, the Forum unanimously condemn the statement by the Southern Governors Forum that the Presidency must go to the South.
“The statement is quite contradictory with the provision of the Constitution of the Federal Republic of Nigeria (1999) as amended that the elected President shall:- score the majority votes; score at least 25% of the votes cast in 2/3 States of the Federation.
“In the case of run-up, simple majority wins the election.”
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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