Rivers VAT Not For Abuja People, I Don’t Care If Heaven Falls, Wike Warns Oil Companies

But some Nigerians have berated the Federal Inland Revenue Service for poor handling of the legal issue.

While commending Wike for what they regard as bold and equitable steps toward fiscal federalism, they argue that for FIRS writing the court requesting for stay of execution in Port Harcourt amounted to lack of understanding of legal issues particularly, the staff of legal department who are being paid from tax payers money.othwr stakeholders who spoke with this platform were unanimous in their submissions that steps by FIRS, warning companies and individuals not to pay the tax to any state government, even after the court had declined its prayers amounts to impunity at the highest level.

However, 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.

According to Punching.com, the governor spoke at a stakeholders’ meeting in Port Harcourt, the state capital, while addressing Shell Petroleum Development Company and other representatives of oil companies and business owners in the state.

It will be recalled 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 Federal Inland Revenue Service, 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.

“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.