Wike warns oil companies in Rivers, says VAT not for ‘Abuja people’

Wike warns oil companies in Rivers, says VAT not for ‘Abuja people’

Rivers State Governor, Nyesom Wike, has insisted on going on with his move to stop the federal government from collecting Value Added Tax from the oil

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Rivers State Governor, Nyesom Wike, has insisted on going on with his move to stop the federal government from collecting Value Added Tax from the oil-rich South-South state.

Wike, who said he does not care if heaven falls, insisted that Rivers’ money is not meant for “Abuja people” but for the development of his state.

Speaking at a stakeholders’ meeting in the state capital, Port Harcourt, the governor addressed Shell Petroleum Development Company and other representatives of oil companies and business owners in the state.

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.

Justice Stephen Daylop Pam had dismissed the Federal Inland Revenue Service (FIRS) application, in Suit No FHC/PHC/149/2021, seeking for a stay of execution on the earlier judgment of the court that stopped FIRS from collecting VAT, as it was constitutionally the role of state governments.

VAT is a consumption tax paid when goods are purchased and services are rendered. It is charged at a rate of 7.5 percent.

Speaking at the stakeholders’ meeting on Wednesday, 8 September, Wike lamented about the injustice in the country saying Rivers generated N15bn in June 2021 but got N4.7bn but “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. I don’t want to be in the good book of anybody but in the good book of God. You don’t bully state like us. FIRS should be very careful. I have the political will to do a lot of things. If they continue to bully us, I will take all their offices in the state,” he stated.

The governor warned the oil companies and business owners not to remit their VAT to FIRS but the Rivers state government.

“I don’t want you to fall prey to the people who think they can use force to take our money. If you want to take advantage and say you don’t know who to pay to, it is a lie, you know. From this September, we will start collecting our VAT. We will not look back but seal up the premises of such companies,” he warned.