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BBC Pidgin of Monday, 11 October 2021

Source: www.bbc.com

VAT in Nigeria: South South Govnors don declare support for states to collect VAT

South South govnors as dem meet for Rivers State South South govnors as dem meet for Rivers State

South South Governors don declare support for States to begin collect Vat (Value Added Tax) come add say dem go join di suit wey di Rivers State Goment don start for Supreme Court against di Federal Inland Revenue Service FIRS.

Chairman of di South South Governor's Forum and Governor of Delta State, Ifeanyi Okowa tok dis one one as im read dia six-point Communique at di end of dia meeting for Goment House Port Harcourt, di Rivers State capital.

Okowa add say di forum don also approve di setting up of a regional security outfit for di South South region and dem go soon launch am.

Dis na because say each state don already establish dia internal State security outfit.

Di Forum also ask di Federal Goment and National Assembly to review some unfair aspects of di Petroleum Industry Act wey President Muhammadu Buhari just sign into law in order for equity and justice to dey.

South South Governors wey attend di meeting include Governor Udom Emmanuel of Akwa Ibom State, Douye Diri of Bayelsa State, Ifeanyi Okowa of Delta State, Godwin Obaseki of Edo State and di host Governor, Nyesom Wike of Rivers State.

Wetin you need to know about di palava between di state goment and FG ontop VAT

Federal goment of Nigeria bin file appeal against one court judgement wey go allow states to collect Value Added Tax (VAT).

Dis na sake of Rivers state Govnor, Nyesom Wike wey dey push for states to dey collect di value added tax as dia right.

Di Rivers Governor say na injustice for states not to collect di right taxes ontop di revenue dem dey generate for dia states and dat one na im ginger dem to go test di law for court.

For inside one ogbonge ruling, di Federal High Court wey siddon for Port Harcourt, Rivers State, declare say di Rivers State goment and not di Federal Inland Revenue Services (FIRS), wey be agency of di federal goment, suppose collect Valued Added Tax (VAT) and Personal Income Tax (PIT) for di state.

Oda States like Lagos State goment also tok say dem too go begin implement di court judgement wey Rivers State goment win ontop VAT collection.

Wetin be Value Added Tax?

Value Added Tax na money wey dey charged on di supply of goods and services in Nigeria, including di ones dem import into di kontri, except di goods and services wey specifically dey exempted under di VAT Act.

By di Finance Act of 2020, wey take effect from February 1, 2020, di Value Added Tax wey dey charged on affected goods and services rise from 5% to 7.5%.

Before dis court judgment, na FIRS wey be agency of federal goment, na im get di responsibility to collect VAT on behalf of di 36 states of di federation and di Federal Capital Territory.

Di amount dem collect go dey shared among di three tiers of goment, and federal goment go take 15%, states go take 50% and local goments dey take 35%.