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A pro-South-South socio-economic group, dubbed BRACED Union (BU), has taken a swipe at the Federal Government for flouting a subsisting High Court order.
A Port Harcourt High Court had directed that henceforth the Federal Government is to comply with extant tax laws of the federation that posit that the Value Added Tax (VAT) is a prerogative of state governments to collect from corporate bodies and remit specified percentage to the central government, and not the reverse, which BU said has been the bane of development.
BRACED Union gave kudos to the governor of Rivers State, Barr Nyesom Wike, “for leading the initiate to assent to the Rivers State VAT Act and compelling the court to enforce it, since the FG has failed to comply with the state Act.”
The Federal Government had filed an appeal against the judgement, through the Federal Inland Revenue Services (FIRS), seeking an ex-parte order to stall its execution, but it was thrown out on grounds of frivolity until the substantive appeal is heard and finalized.
A statement signed by BRACED Union’s president, High Chief Monday Wehere, lauded the efforts of the Rivers governor for this initiative, adding that with this move Nigeria is on the path of ensuring that true federalism is enforced for the good of the regions and state governments as enshrined in sections of the Nigerian constitution.
“Lagos State has followed suit to pass the VAT law so as to enjoy full benefits of taxes accruing on her territory just like Rivers State. I call on other state governments, especially those of the South South, whose tax returns on VAT and mineral resources are distributed to benefit Northern states who contribute little or nothing to the Federation, to follow suit.
“We, in BRACED Union, join Governor Wike, Governor Babajide Sanwo-Olu of Lagos State, and other governors of the South, gearing up to follow suit, to be bold and take the steps to emancipate their states from the economic crunches of the FG that has denied us our returns and used same to fend for docile states of the north with no economic value to the nation.
“It is our desire that the Appeal and Supreme courts would follow suit and interpret the Act in favour of the South states so as for us to really embrace the dividends of true federalism where states have some level of autonomy to stand on their own without resorting to the center for hand outs,” Wehere emphasised.
The statement further highlights that records show that most states of the South, especially Lagos and Rivers top the chart of VAT earnings but have been denied full benefits by the FG who collects and remits an insignificant percentage to these viable states.
Wehere maintained that this inroad being initiated by Governor Wike “shall make the much anticipated South South economic emancipation and independence an emerging reality.
“The BU president enjoins all to rally round Governor Wike and continue their resounding support of this move as it has shown that governors who mean well for their citizens are like golden fish with no hiding place.
The BU helmsman assured that it would continue its agitations for the economic liberation of the South South states as the goose that lay the golden egg and as such deserve the best from VAT returns and a total control of their God endowed resources as it was done in the First Republic when other regional cash crops as cocoa, palm nuts from the West and groundnuts from the North were used as the nation’s main stay.
“What is sauce for the goose, should be sauce for the gander. There is no going back. South South states must enjoy the full benefits of VAT in their domain and must go further to control her human and natural resources for the good of their people who are dying in abject poverty due to the exploitative tendencies of the FG and multi-national oil and gas companies. This injustice must stop.
“We commend Wike for his bold move, as usual, and urge other governors of Akwa Ibom, Bayelsa, Cross Rivers, Delta and Edo to emulate governor Wike by promulgating state laws on VAT to claim what is due them.”
