Rivers State Governor, Nyesom Wike, on Wednesday, insisted on going ahead with the move to stop the Federal Government from collecting Value Added Tax from the oil-rich South-South state.
Wike said he care if heaven falls. He insisted that Rivers money is not meant for “Abuja people” but the development of his state.
The governor spoke at a stakeholders’ meeting in Port Harcourt, the state capital while addressing Shell Petroleum Development Company and other representatives of oil companies and business owners in the state.
Reports earlier revealed that the Federal High Court sitting in Port Harcourt in its judgment last month in a suit marked FHC/PH/CS/149/2020 held that the Rivers State Government had the powers to collect VAT within its territory.
The Federal Inland Revenue Service (FIRS), on Monday, prayed the court to stay execution on the judgment.
But the presiding judge, Justice Stephen Pam, rejected the application, saying granting it would negate the principle of equity.
On Monday, the Lagos State Government also toed the path of Rivers State as a bill to empower it to collect VAT scaled second reading in the state House of Assembly.
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.
Speaking at the stakeholders’ meeting on Wednesday televised live on some TV channels, Wike lamented about the injustice in the country saying Rivers generated N15bn in June 2021 but got N4.7bn while “Kano produced N2.8bn in June but Kano also got N2.8bn. Sometimes you don’t want to believe these things exist”.
The governor said he cannot continue to beg the Federal Government for what belongs to his state.
“People say that let heaven not fall but sometimes I believe that heaven should come down so that everybody will rest…When we do the right thing, heaven is at peace. So, the right thing must be done at all times,” he said.
Wike added, “Rivers State is challenging FIRS from collecting VAT in Rivers State. I am not challenging FIRS from collecting VAT in Abuja. Let it be understood. But the law says Rivers must collect VAT in the state.”
“The Federal Government surreptitiously lobbied to amend the constitution to place VAT collection under the exclusive legislative list
“We have challenged it and we have no apologies to anybody,” the governor said.