Rivers Not At War With Federal Government Over VAT – Wike

With the decision of the Supreme Court being expected over the right to collect Value Added Tax (VAT), Rivers State Governor Nyesom Wike, on Sunday in Abuja waved insinuations that the state was at war with the Federal Government.

He spoke in Abuja at a public lecture entitled: “Taxing Powers in a Federal System” to mark the 60th birthday of Mr Ahmed Raji, (SAN).

Wike said that the state was only trying to pursue what was right and legitimate within the ambit of the constitution.

The governor who was represented by the Attorney-General of the State, Mr Zacchaeus Adangor, (SAN) maintained that Rivers and the Federal Government were co-equal because they both derived their life from the constitution.

“I have heard a lot of comments being made that we are fighting the Federal Government, there is no desire or any intention of the Rivers government to fight the Federal Government.”

Rivers and Lagos states have been at the forefront of the battle to ensure states are responsible for VAT collection, which is in the concurrent list in the constitution.

When the matter was referred to the Rivers State High Court for determination, the court ruled in favour of states having the authority to collect VAT but a subsequent ruling from the appellate court drove the matter to the apex court.

All parties are awaiting the decision on whose right it is to collect VAT based on the appeal made by some states to the Supreme Court.

Findings by THE WHISTLER showed some states in the North including Plateau State joined as co defendants against their fellow states, largely from the South.

But Wike on Sunday clarified that the principle of co-equality is fundamental to a federal arrangement, pointing out that, that principle leads to the principle of autonomy while autonomy leads to physical autonomy and physical autonomy leads to physical federalism.

“When you put all the principles together, what it means is that each level of government, whether federal or state is co-equal because none derives its life from the other.

“They both derive their life from the constitution because they have co-equality.

“That is the fundamental aspect of physical federalism and until we get it, we will continue this journey of talking without result but I think that the court has a role to play , the court can lay this crises and controversy to rest when it makes a pronouncement.”