Governors of the states in Southern Nigeria Thursday said they believe states should be responsible for the collection of Value Added Tax, VAT.
This was part of the resolutions the governors reached in their meeting held in Enugu, South-east Nigeria.
“…the meeting resolved to support the position that the collection of VAT falls within the powers of the States,” one of the seven items in the communique signed by the governors, states.
The communique was shared with PREMIUM TIMES by the spokesperson to the Enugu State governor.
There has been controversy over the collection of VAT after a federal high court ruled that it was not the duty of the federal government to collect it. The tax had been collected by the federal government since the military era although the money is shared by the three tiers of government.
Following the court ruling, Lagos and Rivers states passed laws that allowed them to collect VAT in their states.
The Federal Inland Revenue Service (FIRS), which used to collect the VAT on behalf of the federal government, has, however, challenged the court ruling at the appellate court.