Southern govs laud anti-grazing law progress and backs state collection of VAT

Written by on September 17, 2021

In a meeting attended by nine governors and seven deputy Governors, The Forum expressed support for the collection of the Value Added Tax by states.

The governors made their positions known on Thursday, during their meeting in Enugu on Thursday.

The disagreement over VAT started last month when the Federal High Court sitting in Port Harcourt, in a judgment in suit number FHC/PH/CS/149/2020, held that the Rivers State Government had the powers to collect VAT within its territory.

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 starting the process of passing a bill on VAT in its House of Assembly.

Reading the resolutions of the forum shortly after the meeting the Chairman of the Forum and Governor of Ondo State, Rotimi Akeredolu (SAN), stated that the meeting resolved to support the position that the collection of VAT falls within the powers of the states. The forum urged governors that had not enacted the anti-open grazing law to do so without much delay.

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