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States Implementing VAT Laws Will Lead To Controversy -Northern Governors

The Northern Governors Forum has said if all states imitated Lagos and Rivers by implementing their own Value Added Tax laws, such would lead to controversy.

According to the governors, there would be multiple taxation, rise in prices of goods and services and collapse of inter-state trade if such is implemented.

This position was taken after a meeting in Laduna which deliberated on VAT and other issues bordering on insecurity.

On VAT, the governors held that “Rivers and Lagos states 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 governments 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.”

On why Lagos accounts for a huge chunk of VAT, the northern governors said: “Lagos accounts for our 50% VAT collection 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.”

They decide that “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.”

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