By our reporter/ The Rivers state government on Wednesday informed oil companies, banks and other organisations that the state government will commence VAT collection in September 2021 and advised them to remit such to the state and not FIRS.
The state governor, Nyesom Wike who made the disclosure at a stakeholders’ meeting with oil companies business owners in Port Harcourt, said the state government would inaugurate the tax appeal commission on Friday.
Last month, a high court issued an order restraining the Federal Inland Revenue Service (FIRS) from collecting VAT and Personal Income Tax (PIT) — directing the Rivers state government to take charge of the collection.
The governor subsequently signed a bill on value-added tax (VAT) collection into law.
However, FIRS has since appealed the judgement and asked taxpayers to continue to pay VAT to the agency.
Wike said, “We will inaugurate the tax appeal commission by Friday to let you know that we are very serious.”
“From this September we must collect all our VAT, if you like to play that kind of prank of collecting advice from your head offices, you will also listen for advice from your head offices by the time I seal up your premises.
“I will shut them down. I will be happy that in my time, that heaven came down.
“Rivers state government is fully in charge of this, and we will not hesitate to apply the sanctions under the VAT Law No. 4 of 2021.”
The governor further stated that paying VAT to the federal government does not promote development in the state, revealing that Rivers generated N15 billion VAT in June 2021 but only got N4.7 billion.
“Kano produced N2.8bn in June, but Kano also got N2.8 billion, sometimes you don’t want to believe these things exist,” he added.
“If you want to take the advantage by saying you don’t know who to pay to…it’s a lie because you know. We will not look back, we will seal up the premises of such organisation.”
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