Ebonyi State Governor, Dave Umahi, on Friday, knocked his colleagues on the platform of the Southern Governors’ Forum over their resolution supporting the collection of the Value Added Tax by states.
Umahi, who is the Chairman of the South-East Governors’ Forum, made it clear that Ebonyi won’t pursue VAT collection or implement the decision of the Forum made at a meeting in Enugu on Thursday.
VAT is a consumption tax paid when goods are purchased and services are rendered. It is charged at a rate of 7.5 per cent.
Although Rivers and Lagos states have started the process of collecting VAT within their territories, the Court of Appeal in a ruling on September 10 stopped the collection pending the determination of an appeal filed by the Federal Inland Revenue Service against the judgment of the Federal High Court sitting in Port Harcourt.
Apart from Lagos and Rivers states, Ogun State has also started the process of passing a bill on VAT in its House of Assembly.
The Southern Governors’ Forum led by Governor of Ondo State, Rotimi Akeredolu (SAN), reading a communiqué at the end of a meeting on Thursday had said, “The meeting resolved to support the position that the collection of VAT falls within the powers of the states.”
