VAT: Southwest states plan joint action

The Southwest states of Ekiti, Lagos, Ogun, Ondo, Osun and Oyo may team up to present a common front on the collection of Value Added Tax (VAT), it was gathered Saturday night.

The Southwest states of Ekiti, Lagos, Ogun, Ondo, Osun and Oyo may team up to present a common front on the collection of Value Added Tax (VAT), it was gathered Saturday night.

Some other states, including Kaduna, Delta, Enugu and Cross River, are reviewing development of the last few days on the matter especially  Friday’s ruling of the Court of Appeal which  requires  parties in the VAT dispute  to stay action pending  the resolution of all legal issues in contention.

Sources said yesterday that Houses of Assembly in the Southwest are currently discussing how they could present a common front on the collection of VAT.

The discussions are being held by the Majority Leaders of the assemblies under the auspices of the Southwest Legislative Reforms and Implementation Committee (SLRIC).

Chaired by the Majority Leader of Lagos State, Hon. Bolanle Sanai Agunbiade, the SLRIC has as members all the Majority Leaders of assemblies in the zone.

The committee, according to a source, has resolved to discuss and work out the legal frameworks of how the states will react to the ongoing dispute over VAT collection as well as the implementation of the resolutions across the zone.

One of the key players in the talks said: “All the state assemblies in the Southwest are poised to toe the path championed by Lagos State House of Assembly.

“I can confirm to you that the issue is being handled by a high powered legislative committee established to ensure common fronts to all issues of common interest in the zone. The VAT matter is one of such issues and we are discussing it.

“The committee has started discussing the issue and we are coming out with a common position on the matter. What Lagos has done as usual is to blaze the trail.”

Responding to Appeal Court’s order that status quo be maintained on the issue,the source said: “this whole uproar is not just about collecting VAT but discussing, understanding and implementing the issues being raised about the matter correctly.

“We, as lawmakers, will not just act without considering the implications. That is why we are threading the honourable path of legislation. Lagos has started it as usual and I can tell you other states in the Southwest will follow suit. Not fewer than three other state assemblies have commenced the process of legislating on VAT as it concerns their states.

“As legislators, we will do the needful irrespective of whatever the status quo is. We know what the law says and we understand what the issues are. Without being sentimental, we are dissecting the matter and gradually, we are bringing out the various complications to be addressed. At the end of this whole uproar, I believe we will arrive at a common position nationwide.”

A separate source told The Nation in Akure yesterday that the Ondo State government might join Lagos and River states in the battle to collect VAT.

A top government official said plans were on to send a bill to the State House of Assembly on the matter.

The source stated that Governor Oluwarotimi Akeredolu was ready to support any move to increase government finances.

Another official said the Ondo governor was waiting for the final decision by the Supreme Court before making a move.

Ondo Commissioner for Information and Orientation, Donald Ojogo, could not be reached for comments.

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