₦airaland Forum

Rivers State Governor, Nyesom Wike, on Wednesday, threatened to “take over” all offices of the Federal Inland Revenue Service in the oil-rich South-South state if the government agency continues with its “bullying”.

The governor spoke at a stakeholders’ meeting in Port Harcourt, the state capital, while addressing business owners in the state.

The governor told the oil firms, construction companies and other business owners operating in the state to start remitting their Value Added Tax to the state government beginning this September.

The PUNCH had earlier reported 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 FIRS, on Monday, prayed the court to stay execution on the judgment.

But the presiding judge, Justice Stephem Pam, rejected the application, saying granting it would negate the principle of equity.

On Monday, the Lagos State Government 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 Channels TV and two other stations, 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.

He warned the FIRS to desist from “bullying” the state with federal might.

“I overhead the FIRS chairman saying that he will show me the powers of the Federal Government that the Federal Government will muzzle the judiciary. It is not my business. The court has decided,” the governor said.

“All these bullying (by) FIRS. They should mind the state they are bullying. FIRS should be very careful. You don’t bully a state like us…I have the political will to do a lot of things. I am not one of those governors that will shy away. If they continue to bully us, all their offices in the state, I will take,” he stated.


‘I will seal off your premises if you continue paying VAT to FIRS’


The governor also warned the oil companies and business owners not to remit their VAT to FIRS but the Rivers State Government.

“From this September, we will start collecting our VAT,” Wike said, warning that his government “will not look back but seal up the premises of companies” who fail to comply with the new directive.

The governor also noted that the state does not need the Nigeria Police Force to enforce the collection of VAT but would use the state-created security outfit backed by the law.

The Federal Inland Revenue Service (FIRS), Wednesday said it has the backing of the Value Added Tax (VAT) Act to collect the tax.

Rivers State government is currently locked in a legal battle with the tax agency over the collection of VAT.

FIRS Group Lead, Special Tax Operations Group, Mr. Matthew Gbonjubola and his Digital and Innovation counterpart, Mrs. Chiaka Ben-Obi gave insight into the position of the organisation, in Abuja.

Mr. Gbonjubola explained that the bulk of VAT revenue comes from imports as well as, federal government Ministries Departments and Agencies (MDAs) contractors.

He said that in-country VAT revenue from the states was minimal.

According to him, no state government controls any port and that as such, it would be very difficult, if not impossible for sub-nationals to collect VAT.

The Federal Inland Revenue Service, in a desperate bid to retain the collection of the Value Added Tax, has written the National Assembly, seeking the inclusion of VAT collection in the exclusive legislative list.

The federal tax agency is also requesting the federal lawmakers to approve for it, the establishment of the Federal Revenue Court of Nigeria.

A Federal High Court in Port Harcourt had on August 10 delivered a judgment restraining the FIRS from collecting VAT and personal income tax in Rivers State.

Although the FIRS had appealed the ruling, it however, failed to obtain a stay of execution it sought to prevent the state government from enforcing the verdict.

However, our correspondent on Wednesday, obtained a letter signed by the Executive Chairman of the FIRS, Muhammad Nami, and dated July 1, 2021, was addressed to the Chairman of the Constitution Review who is also the Deputy Speaker of the House of Representatives, Idris Wase.

The letter with references number FIRS/EC/CWREP/0416/21/037
which was received in Wase’s office on July 2, was titled, ‘Request for sponsorship of a bill for the establishment of the proposed Federal Revenue Court of Nigeria and the insertion of Value Added Tax under item 58 of the exclusive legislative list’.

The federal tax agency specifically pleaded with the nation’s apex legislative institution, to vest, exclusively, all adjudication of tax disputes, including federal tax laws, companies income tax, petroleum tax, income tax, capital gain tax, stamp duty, VAT, taxes, levies and other laws, regulations, proclamations, government notices and rules on it.

Part of the letter read, “The Federal Inland Revenue Service further proposes for the amendment of Section 251 (1) (b) of the Constitution of the FRN 1999 (amended) by removing the exclusive jurisdiction of the Federal High Court only on anything connected or related to federal tax matters since same would be vested on the proposed federal revenue court.

“The Federal Inland Revenue Service also proposes for the insertion of value added tax immediately after Stamp Duties under item 58 part II of 2nd schedule of the 1999 Constitution of the FRN.

“The Federal Inland Revenue Service appreciates the maximum cooperation and support we are receiving from your good office on tax matters generally.

“This has boosted our morale and determination to do more for the government in tax revenue generation.

“The FIRS therefore wishes to further request that the House of Representatives consider the request for the establishment of the Federal Revenue Court.”

The FIRS in the letter, noted that Item 59 of the Exclusive Legislative List Part 1, 2nd Schedule to the Constitution of the FRN 1999 as amended vests the powers to make laws on anything related to tax matters in Nigeria, on the National Assembly.

It added, “Historically, the Federal Revenue Court was established by the promulgation of the Federal Revenue Court Decree No.13 1973.

“However, the enactment of Section 228(1) and 230(1) of the 1979 Constitution of FRN, renamed the Revenue Court to Federal High Court.

“This was further replicated by the Federal High Court Decree (amendment) 1991Cap (60l LFN, now referred to as the Federal High Court (amendment) Act 2005 Cap F12 LFN revised edition 2010

” This amended Section 7 of the Federal High Court Act (1991), conferred exclusive jurisdiction on the Federal High Court in relation to tax matters amongst others.

“Section 228(1) and 230(1) was further re-enacted as Section 251(1) (a) to (s), of the Constitution of FRN 1999.

“The FIRS hereby proposes for the insertion of Section 254(G) to 254 (L) in the 1999 Constitution of the FRN to provide for the establishment of Federal Revenue Court, the appointment of Chief Judge, power to make rules for the proceedings, the appointment of judges of FRC and the exclusive jurisdiction of FRC on federal tax matters.”

osuofia2:
Fake news, in real sense, the South needs the North more than the North needs South.
We feed the South, in turn what do they contribute to Nigeria aside given us problems up and down.
Lord Lugard shouldn't have joined us with those bunch of noise makers called southerners.

Righteousness2:
Just see How People are doing everything they can to make the Flight and avoid being left behind in Afaghistan.
You can imagine where some Parents even had to Leave their kids behind and run into the Plane for their own safety.

We see Humans fleeing from the wrath of Fellow Humans, and yet many are Joking with their lives and are refusing to flee from the wrath of GOD , Despite what we are witnessing. Many are engaging in Useless arguments and talks that cannot save the soul.

Folks, it so clear that the world is normal anymore.
I Admonish you for your own Safety, to Come into the ark of Safety because things are about to Happen.
The Ark of Safety is JESUS Christ.

CodeTemplar:
How much of it can he spend on himself? If health issues show up, all these will count for little.

arthurwillia:
Ok thank you so much for this

But do you really believe the passion can grow? Like when I start first passion can grow?

Born2Breed:
Less than 6Billion from over 100billion!
Come on that's too small. She deserves at least 20billion. She has always been there giving him bedroom advice before he goes into the boardroom.

Techola:
Bosses in the house, Good Morning - Obviously PHP has been the more popular technology for years, professional developers are increasingly opting for Node.js.

Which would you rather go for, and you're reasons

newdawn2017:
what a wicked man!

ValCon888:
I don't know how the American Justice System does it.
But anytime a criminal from naija is caught and extradited, they start to sing at the top of their voice.

Hushpuppi is currently singing and his music is topping the charts.
By the time Abba Kyari starts to sing, even the Inspector General of Police won't be safe.

Abba Kyari the Super Cop is now Abba Kyari the Super Corrupt.

Rozcol:
Mother Theresa well done ooo,you should have asked if I'm already engaged or not and I don't pray to ever meet the likes of your brothers who doesn't know their right from left.If its your choice to suffer with a man what's my own there? and if its my choice not to suffer with any man how e take concern you? The op is a liar and wisdom demands that we read both sides before passing judgement but he succeeded in winning you all to his pity party game.

Nancee4love:
May God deliver my brothers from ur type
Ur mindset is disgusting very bad a d crude, you are not matured for marriage and a disaster to any man who gets engaged to u with this kind of mindset
Better Don't marry please before you jeopardize the life of another man's son
What is marriage? Covenant partnership. A Partner is a supporter in their partnership, they may not have equal share but each partner had a share of responsibility to the agreement of partnership. Guyz run from a lady who does not see marriage from the angle and perspective of partnership that lady is not your wife. A woman who truly loves you supports you. My dad went dead broke and it was my mum who helped raised him back to life with no insult but still gave him his maximum respect during the darkest moment of his life, she made home comfortable and marriage easy for him till he bounced back. My father is late but all his properties after he bounced back was willed to my mum and us the children.
Goossh you are a disgrace to us women responsible women. Please go fix yourself before marriage. Guyz shine your eyes please we still have good women or ladies out their. I will never marry a man I can't support. It's not about it's my choice to support him or not it's my responsibility to support him. 2 have become one. You see this kind of mindset this lady has is toxic. As an adult do u know it's your responsibility to take care of yourself, keep waiting for a man to do that. May God not allow my brothers to encounter ur type.
Op pick up urself and move you met and plunged the wrong flower.

Rozcol:
Please let us hear word and for your information she's right about that number 2,in marriage a man should provide everything and its solely depend on your wife's decision to assist you or not,its not a mandatory task.Women are care givers and not providers, you can't expect a woman to provide and still respect you it usually don't happen that way.She's not here to say her own side so nobody has the right to condemn her yet. No be Nigerian men again mtchewww