The Rivers State Governor, Nyesom Wike has lamented on the injustice mated against some states including Rivers State by Federal Government in term of tax collections and sharing.
He said that in June the Rivers State generated a total of N15.1bn but was given a paltry of N4.7b. In same month N46.4 was generated from Lagos State but received only N9.3bn, while Kano that generated N2.8bn was given N2.8bn, which represents 100% of its taxes receipts.
“In June N15.1bn was collected as taxes in Rivers State but N4.7bn was given to Rivers State, N46.4bn was collected from Lagos State but Lagos was given N9.3bn.
“Kano generated N2.8bn and was given N2.8bn.
“Have you seen the injustice in this Country ?”
Wike stressed that his interest is for the right thing to be done. His fight for each state to collect and manage VAT and income taxes is a fight for justice and it is for the benefits of all the states, saying he can’t be governor forever.
“I will not be Governor forever, it's not about me but about the system.
“ Let the right thing be done.”
Rivers State had challenged the right of the Federal Government to collect taxes in Rivers State, and by extension in all the states of the federation. A Federal High Court sitting in Part Harcourt held that it’s the right of states to collect income and services taxes, not the federal government, a judgement which the Federal Government appealed at the Appeal Court and lost. Appeal Court upheld the judgement of the first court of instance.
Rivers State Government has passed a law mandating the state revenue board to collect taxes including value added tax in the state, and the businesses operating in Rivers State to remit such taxes to Rivers State government.
Lagos State Governor, Babajide Sawo-olu has in same vein sent and executive bill the the state house of assembly on VAT.