Gombe stands with the FG on VAT collection -Gombe IRS
Gombe State Internal Revenue Service Chairman, Inuwa Tata, says the state is solidly behind the Federal Government on collection of Value Added Tax (VAT).
He disclosed this on Friday, during an Award presentation in Gombe, by the Chairman of the Revenue Magazine, Mr. Frederick Apeji, as State is the 6th fastest growing internal revenue.
Recall that recently the Gombe State Commissioner for Finance Muhammad Magaji, urged Rivers and Lagos states to be their northern states brothers’ keeper for threatening to be solely responsible for the collection of VAT in their states.
Tata explained, “Gombe State, like you know stands with the Federal Government. You see before now what we have in place is sell tax of 1986. The same tax was promulgated under the military rule, it is what is in operation.
“It comes with multiple taxation and current tax administration has to do away with multiple taxation where one individual pays tax on the same subject. The issue of sell tax was abolished in 1983 and VAT came in place.
“So, when we have Value Added Tax, only one institution collects onbehalf of the 36 states and the FCT that is Federal Inland Revenue Service and remits it to tax poll account where proceeds is distributed across the Federating unit; Federal, State and Local Governments. It is on the premise that we want the Federal Government to continue to collect and share to the Federating unit.”
Commenting further the tax boss, noted that agitating states can pursue their demands through joint tax board, noting that the state would be ready to build capacity of it officials to measure up.
“There is what is called the horizontal and vertical distribution formula. Those states that want VAT to be collected by individual states can channel their grievances to Joint tax board.
“This is a unifying platform that makes decision on behalf of the entire entity and all states of the Federation is represented there. We are not saying when they succeed in their appeal that we are not going to comply. We have the capacity, and we will build more,” Tata added.
Tata explained that prior to the coming of the current administration the state earned between, “N500m monthly this includes state PayE, Local Government and SUBEB. It fluctuates between N200- N300m. When we came on board the story changed slightly in 2020 on the average we have N716m on monthly basis and it comprises the state PayE, Local Government, SUBEB and Local Education Authority.
“The number we have currently from January to August 2021 on average we have N786m including the payE. We will continue to improve to ensure the number keeps growing,” he said.
Handing the tax man the award, Apeji, explained that the annual Nigerian States IGR Awards Programme was designed to encourage and foster a healthy competition among the FCT and the 36 states of the Federation.
Apeji said, “with the good will and support of the Board of Internal Revenue of the 36 States and the FCT.
“We also seek the involvement of other key Government agencies and bodies for the event.”
