Former Senator Shehu Sani has said that it is unjust for
only four states to receive 70 percent of the Value Added Tax (VAT)
distribution.
The Federal Inland Revenue Service (FIRS) Chairman had told
the House of Representatives that only four states take 70 percent of VAT,
namely Lagos, Rivers, Oyo, and the FCT, citing an example of MTN paying most of
its VAT to Lagos while all the states consume its services.
Reacting to this, Sani, in a statement via X, admonished
critics of the Bill to remove their political lenses and read the document
thoroughly.
He also said the Bill should be supported to end the
prevailing tax injustice in the country.
“The revelation made yesterday by the FIRS Chairman before
the House of Reps that presently only four states corner 70 percent of VAT,
namely Lagos, Rivers, Oyo, and FCT, is unjust. This is a strong justification
for the tax reform.
“He also cited an example of MTN paying most of its VAT to
Lagos while all the states are paying for its services. I still admonish the
critics of the Bill to remove their political lenses and read the document
thoroughly.
“The Bill will ensure equity, fairness, and allocate more
resources to all other states. All the sentiments raised against the Bill are
not contained in the Bill. The Bill should be supported to end the prevailing
tax injustice in the country,” he wrote.
Recall that governors of the 19 Northern states, under the
platform of the Northern Governors’ Forum, at a meeting on October 28, 2024, in
Kaduna, rejected the new derivation-based model for Value-Added Tax
distribution in the new tax reform bills before the National Assembly.
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