A former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu has thrown his weight behind the court ruling that Value Added Tax (VAT) belongs to states, and not to be remitted to the federal account via Federal Inland Revenue Service (FIRS).
The former presidential candidate also described the administration of President Muhammadu Buhari as lazy.
Moghalu disclosed this on his verified Twitter page on Wednesday.
Rivers State Governor, Nyesom Wike has vowed that his state will collect VAT from companies operating within its borders as ruled by the High Court.
Wike said the “Abuja people” would not collect the VAT meant for the oil-rich Rivers state.
“Rivers State is challenging FIRS from collecting VAT in Rivers State. I am not challenging FIRS from collecting VAT from Abuja. Let it be understood. But the law says Rivers must collect VAT in the state.
“The Federal Government surreptitiously lobbied to amend the constitution to place VAT collection under the exclusive legislative list.
“We have challenged it and we have no apologies for anybody,” Wike said at a stakeholders’ meeting on Wednesday.
Reacting, Moghalu said the court order in the favour of Rivers State was “a blow at the lazy federal government.”
“The Federal High Court ruling on VAT is the correct one, though we can expect litigation all the way to the Supreme Court. It strikes a strong blow at THE LAZY FEDERAL GOVERNMENT whose head once called our youth “lazy.” Nigeria has long been a fiscally failed state,” Moghalu tweeted.
The Federal High Court ruling on VAT is the correct one, though we can expect litigation all the way to the Supreme Court. It strikes a strong blow at THE LAZY FEDERAL GOVERNMENT whose head once called our youth “lazy”. Nigeria has long been a fiscally failed state.
— Kingsley Moghalu (@MoghaluKingsley) September 8, 2021
SaharaReporters, New York