Governors of the 19 northern States are holding an emergency meeting in Kaduna on Monday over the sharing of Value-Added Tax (VAT) and other issues.
According to the British Broadcasting Corporation, (BBC) Hausa service, Kaduna State governor, Nasiru Ahmed el-Rufa’i, will host the meeting, which will be chaired by the Chairman of the Northern Governors Forum, (NGF) and Governor of Plateau State, Simon Lalong.
Recall that some southern States and the Federal Inland Revenue Service (FIRS) have been at loggerheads over the collection of VAT, with Lagos and Rivers state being at the forefront.
A federal court in Port Harcourt in August ruled that Rivers State had the right to collect its taxes. However, the FIRS has appealed the ruling.
Lagos and River State Houses of Assembly have since passed bills empowering the state government to collect VAT in their States.
Rivers State governor, Nyesom Wike and his Lagos State counterpart, Babajide Sanwo-Olu, have signed the Bills into law.
The law passed by the Lagos State House of Assembly empowers the States to charge VAT at the rate of 6% on the value of goods and services in the State. The federal government currently collects 7.5% as VAT.
The law further states that revenue accruing from VAT would be shared on a ratio of 75% to 25% between the State government and the Local Government Council Areas.
However, the Attorney-General of the Federation, (AGF), and Minister of Justice, Abubakar Malami, has said that no State has the right to collect national taxes.
