Southern governors lack understanding of VAT   – Northern Governors

LAGOS, Nigeria – The Northern Governors have lampooned their southern counterpart, saying that they lack understanding of  the subject matter of Value Added Tax, VAT. The governors who made their position known under the auspices of the Northern Governors Forum, said the Southern Governors are confusing VAT with sales tax.

In a communiqué issued at the end of the meeting, the Northern Governors  said  “Rivers and Lagos states enacted their own VAT laws and the Southern Governors Forum have expressed support for this course of action.

According to the Northern Governors, “VAT is being confused by these state governments as a sales tax. If every State enacted its own VAT Law, multiple taxation will result in increases of prices of goods and services and collapsed in interstate trade.

“VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer.”

According to them,  “Lagos accounts for our 50% VAT collection because most of the telecommunication companies, banks, manufacturing and other trading activities have their headquarters in Lagos, with the resultant and wrongful attribution of VAT.”

The governors said that  “Until and unless the Supreme Court pronounces judgment on the substantive matter between Rivers State and Federal Government, the matter is subjudice and Northern States Governors Forum would respect this.”