Rivers State Governor, Nyesom Wike, on Wednesday, insisted
on going on with his move to stop the Federal Government from collecting Value
Added Tax from the oil-rich South-South state.
Wike, who said he does not care if heaven falls, insisted
that Rivers money is not meant for “Abuja people” but for the development of
his state.
The governor spoke at a stakeholders’ meeting in Port
Harcourt, the state capital, while addressing Shell Petroleum Development
Company and other representatives of oil companies and business owners in the
state.
The Federal High Court
sitting in Port Harcourt in its judgment last month in a suit marked
FHC/PH/CS/149/2020 held that the Rivers State Government had the powers to
collect VAT within its territory.
The Federal Inland Revenue Service, on Monday, prayed the court
to stay execution on the judgment.
But the presiding judge, Justice Stephem Pam, rejected the
application, saying granting it would negate the principle of equity.
On Monday, the Lagos State Government toed the path of
Rivers State as a bill to empower it to collect VAT scaled second reading in
the state House of Assembly.
VAT is a consumption tax paid when goods are purchased and
services are rendered. It is charged at a rate of 7.5 per cent.
Speaking at the stakeholders’ meeting on Wednesday televised
live on Channels TV and two other stations, Wike lamented about the injustice
in the country saying Rivers generated N15bn in June 2021 but got N4.7bn but
“Kano produced N2.8bn in June but Kano also got N2.8bn. Sometimes you don’t
want to believe these things exist”.
The governor said he cannot continue to beg the Federal
Government for what belongs to his state.
“People say that let heaven not fall but sometimes I believe
that heaven should come down so that everybody will rest…When we do the right thing,
heaven is at peace. So, the right thing must be done at all times,” he said.
‘I will shut FIRS offices in Rivers if bullying continues’
Wike added, “Rivers State is challenging FIRS from
collecting VAT in Rivers State. I am not challenging FIRS from collecting VAT
in Abuja. Let it be understood. But the law says Rivers must collect VAT in the
state.”
“The Federal Government surreptitiously lobbied to amend the
constitution to place VAT collection under the exclusive legislative list
“We have challenged it and we have no apologies to anybody.
“I don’t want to be in the good book of anybody but in the
good book of God.
“You don’t bully state like us. FIRS should be very careful.
I have the political will to do a lot of things. If they continue to bully us,
I will take all their offices in the state,” he stated.
Rivers begin VAT collection September, says Wike
The governor warned the oil companies and business owners
not to remit their VAT to FIRS but the Rivers State Government.
“I don’t want you to fall prey of the people who think they
can use force to take our money.
“If you want to take advantage and say you don’t know who to
pay to, it is a lie, you know.
“From this September, we will start collecting our VAT.
“We will not look back but seal up the premises of such
companies,” he warned.
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