Wike started a revolution with VAT law – Adegboruwa

Human rights lawyer, Ebun-Olu Adegboruwa (SAN), on Thursday, commended Governor Nyesom Wike of Rivers State for championing the agitation for fiscal federalism in Nigeria.

He also applauded Lagos State governor, Babajide Sanwo-Olu, for following on the heels of Wike’s victory, pushing through a bill on Value Added Tax (VAT) collection at the Lagos State House of Assembly.

Adegboruwa, in a statement said the collection of VAT by states is a “form of restructuring”.

The lawyer, who commended the Rivers State governor for starting a “revolution”, said enough of “feeding-bottle federalism and Abuja financial pilgrimage!”

In his statement titled, ‘State VAT Laws Is A Form Of Restructuring’, Adegboruwa said: “It is restructuring and I support it 100%. We’ve been shouting and crying for this lopsided federalism to be made equitable. Those who make peaceful change impossible make violent change inevitable.

“I commend Gov Wike who started this revolution.

“I also commend Gov Sanwo-Olu; my LBS and Hon A-G, Onigbanjo and the Lagos House of Assembly.

“Other laws should follow. LASG should go to Lagos High Court to seek an order for immediate compliance with the VAT law by all persons and authorities doing business in Lagos State.

READ: Lagos Assembly passes VAT, Anti-Open Grazing bills

“It’s a good beginning. Enough of feeding-bottle federalism and Abuja financial pilgrimage!”

The Federal High Court sitting in Port Harcourt, Rivers State, last month 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 the Federal Inland Revenue Service (FIRS) applied to the court for a stay of execution, Justice Stephen Pam rejected the application, saying granting it would negate the principle of equity.

Governor Wike had consequently gone all out to implement the new law.

He lamented the injustice in the distribution of the VAT proceed, saying Rivers State generated N15bn VAT revenue in June this year, but got N4.7bn in return, while Kano generated N2.8bn in the same month and got the same N2.8bn back.

He added that N46.4bn was collected from Lagos State in the same month but the Federal Government gave Lagos N9.3bn.

“Sometimes, you don’t want to believe these things exist,” he fumed.

The governor had assented to the Rivers State Value Added Tax Law 2021 in August after it was passed by the state House of Assembly.

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