Wike knocks critics over fight with FIRS for VAT collection

The Governor of Rivers State, Nyesom Wike, has knocked those criticising the move by the state government to challenge the legality of the Federal Inland Revenue Service (FIRS) in collecting Value Added Tax (VAT).

The governor argued that the nation must encourage federating states to harness their resources to generate revenues, including VAT to advance their development.

Wike, who spoke when the Managing Director and Editor-in-Chief of the SUN (Newspaper) Publishing Limited, Mr Onuoha Ukeh, led a delegation to his office, said he had no problem with being his brother’s keeper as canvassed by some people, but maintained that they must first acknowledge that the states have the right to collect VAT.

The governor said, “Some people say, be your brother’s keeper; I have no problem in being my brother’s keeper but why not come out and say, let us tell ourselves the simple truth?” he queried. “As it is being provided in the law, who is the person responsible to collect the VAT?

When you agree to that, that it is the state, then we can sit down to look at the different problems of states. And not to say be your brother’s keeper while you’re doing an illegal thing, in disobeying what the law says you should not do.”

Wike faulted one of his colleagues who reportedly said the judgement of the court that empowered states to collect VAT within their jurisdiction would not stand, saying that the governor should instead, commend the state government for seeking to entrench fiscal federalism and constitutionalism.

Meanwhile, the governor raised the alarm over attempts to frustrate Rivers and other states from actualising the constitutional provisions that empowered them to exploit their resources and revenues, particularly VAT.

Also, he described the alleged refusal of the Federal Government to include Rivers as one of the states that would benefit from projects, for which it was seeking fresh foreign loans to execute, as an act of discrimination.

“Look at the money that the Federal Government has gone to borrow from the World Bank, of all the projects in all the states, the Federal Government did not include Rivers State,” the governor said.

Gov Wike threatens to shut down banks, other businesses that pay VAT to FIRS

The governor of Rivers State has threatened that the state government will shut down the premises of any bank or business organisation in the state that continues to pay Value Added Tax (TAX) to the federal government through the Federal Inland Revenue Service. (FIRS).

The governor stated this in Port Harcourt on Wednesday during an interactive session with corporate organizations in the state.

He lamented that the federal government has purposely turned the states into beggars, by making them congregate regularly in Abuja to beg for funds, instead of utilizing their potentials to develop their respective states.

Gov Wike threatens to shut down banks, other businesses that pay VAT to FIRS

The warning from Wike again brings to the fore, the ongoing cold war between the FIRS and the Rivers State Government over which authority has the right to collect VAT.

Ripples Nigeria had reported on Monday that Wike warned the FIRS against sabotaging the state government to freely administer its own tax and other related laws in the state.

Wike gave the warning while reacting to a Federal High Court ruling, which dismissed FIRS’ move to stop the state government from collecting Valued Added Tax (VAT) pending the determination of the matter in court.

In a reiteration of his earlier statement, the Governor implored the organisations and businesses to pay their taxes to the coffers of the state government in order to ensure the revamp of infrastructure and crucial sectors for economic boom.

“What we are doing is not against the law and it is obvious for everyone to see. In September, a lot of projects are earmarked to be commissioned. Kindly pay your taxes.

“The payment of taxes will ensure the revamp of critical infrastructure and we are waiting for the court ruling with FIRS before the next step,” the Governor said.

In order to ensure strict adherence to tax payments, the Governor warned against defaulting while urging organisations to jettison imminent threats from the FIRS.

“Rivers state will not hesitate to apply sanctions in line with the VAT laws to defaulting organisations. This is part of giving governance a human face.

“The court reveals that until there is a reverse, the state has the wherewithal to collect taxes.

Let nobody threaten you. FIRS will issue threats but don’t waver in your responsibilities,” the governor concluded.

He also lamented that some states were being timid to do the right thing because of threats from the federal government, and that the states’ executives were being deceived to believe that they would be at the receiving end if states are allowed to collect VAT.

Wike noted that the issue was a legal and constitutional one, and should not be viewed as politics, or based on political parties.

He revealed that the Federal government having realised it’s error of collecting VAT illegally had quietly written to the National Assembly through the office of the Speaker of the House of Representatives, to amend the Constitution by including the VAT issue on the exclusive list, even while the matter was still in court.

EFCC Invites Babatunde Fowler Over Alleged Fraud

The former Chairman of the Lagos State Internal Revenue Service, Babatunde Fowler, appeared before the Economic and Financial Crimes Commission on Monday, sparking speculations he has questions to answer over his tenure.

Fowler, who also served one term as the Chief Executive of the Federal Inland Revenue Service, FIRS, was summoned to the Lagos State Zonal Office of the EFCC on Monday morning, and, he appeared in person.

As at the time of filing the report, an EFCC source familiar with the invitation said Fowler was still being interrogated in Lagos.

The source hinted that contrary to speculations, Fowler was not invited in connection with his stewardship at the FIRS but in relation to his tenure at the Lagos Internal Revenue Service based on a petition.

However, later in the day, the Spokesman for the EFCC, Wilson Uwujaren, confirmed the invitation of Fowler to Vanguard.

Wilson said that Fowler was invited and he responded but did not give further details on what the petition against him contains.