By Tordue Salem

A law to back states’ battle to collect Value Added Taxes, VAT, their right to mine and control their resources, is underway in the House of Representatives.

Several states of the federation, are currently in a legal battle with the Federal Government on who collects VAT on goods and services.

A bill to that effect, entitled “An Act to Alter 39, Part 1 of the Second Schedule of the 1999 Constitution as Amended to Substitute and Move the Item from the Exclusive Legislative List to the Concurrent Legislative List”, sponsored by Reps Hassan Usman Sokodabo and John Dyegh, was exclusively obtained by VANGUARD.

The instrument proposes in part, that “The Constitution of the Federal Republic of Nigeria, 1999, is hereby altered as set out. Item 39, part 1 of the Second Schedule of the Principal Act, Altered by substituting the item and moving it from the Exclusive Legislative List, to the Concurrent List.

“Thus, item 39, Part 1 of the Second Schedule of the Constitution to be moved to the Concurrent Legislative List now read: States Government shall manage their resources, mines and minerals, including oil fields, oil mining, Values Added Tax(VAT), geological surveys as well as natural gas. 50% of the total revenue accruable from the minerals shall be retained by the state where the minerals are derived.

“30% shall be credited to the Distributable Pool Account, while the remaining 20%, shall be credited to the Federation Account”.

The piece of legislation listed for consideration in this legislative quarter, is expected to generate a considerable controversy, sources told VANGUARD.

Aidejay:
Where was the bill 2 years ago? Or 1 year ago at least. So if Wike didn't go to court and win, nobody for remember say they should create bill to allow states collect VAT.

ladiguy:

Correct but note LAgos made the move before Rivers (Wike). Lagos state government sued the federal government and the court told Lagos can’t sue the government but the agency in charge of VAT, sonWike had to go after the agency (FIRS).

dre11:








https://www.vanguardngr.com/2021/09/exclusive-reps-bill-to-back-states-to-collect-vat-control-resources/


Lalasticlala

Aidejay:
and?

Aufbauh:
Many still don't understand the write up or the VAT debacle yet they want to write something. Nigerians are very sentimental people that is why we can hardly get things right.

However the proposal by the HoR is a welcome development as it will create soft landing for the over 30 states that are insolvent.

The bitter reality is that if States are to take control of their respective state VAT over 30 states of the federation can't meet up going by their current standing.
Apart from Lagos, Rivers, Oyo, Ogun and one or two States in the SS including FCT, the remaining States are insolvent. Yet their indigenes won't allow us on nairaland about state control whereas their Governors are scared to stand on their own.

ImmaculateJOE:
Femi Gbajabiamila becoming useful.
All Igbo Lawmakers in the green house should raise their two hands.

arsenic33:
True Federalism is what we seek for