Politics

Ogun State Joins Fray to Collect VAT

By Web News 760

Ogun State governor, Dapo Abiodun, says the state joined other states in the fray to collect the Value Added Tax gets a fair share from the money being generated from the system.

The governor stated this when hosting members of the Institute of Chartered Accountant of Nigeria (ICAN)  at Oke-Mosan, Abeokuta.

According to governor Abiodun, the government decided to take advantage of the VAT controversy with the view to ensure Ogun gets a fair share from the VAT money.

He explained that despite the huge revenue being generated from VAT, the state’s share does not reflect what it generates, insisting the state action on the issue was to ensure fairness.

The governor lamented that the country is spending so much to subsidize petroleum products, thus wasting fund needed to provide basic amenities which would fast-track development.

While informing the ICAN leadership that his administration was strictly adhering to all the tenets of good governance,  Abiodun said the state generated the sum of N75bn in the  last nine months and was working towards surpassing this next year.

On the State’s Accountability Index (AI) position of the the ICAN, he observed that Ogun has moved from the 29th to 19th position, expressing his administration’s desire to see the state in the first three positions next year.

Speaking earlier, the ICAN president, Mrs. Comfort Olu Eyitayo, noted the exemplary leadership style of the governor, which she said has impacted positively in the health, education, youth development and other sectors of the economy of Ogun.

She said that the Institute has made its position known on topical issues such as Value Added Tax (VAT) and the Petroleum Industry Act, adding that the Institute would soon embark on another round of Accountability Index assessment across the country.

Mrs. Eyitayo said the visit was as part of the stakeholders engagement to reposition the Institute in order to make it stand out as a foremost accounting professional body in the country.

Wale Oluokun

Judiciary

Oyo State Government Seeks To Join VAT Appeal Suit

By Web News 684

Oyo State Government wants the Court of Appeal sitting in Port Harcourt, Rivers State for joinder in the suit instituted by the Rivers State Government against the Attorney-General of the Federation in respect to the bid by the state to take over the collection of the Value Added Tax, VAT, from the federal government.

The suit, instituted by the Attorney-General of Oyo State, Professor Oyelowo Oyewo is seeking an order of the Appellate Court to enable Oyo State to join the suit as an interested party.

In the suit, the government of Oyo State is seeking two orders, viz: an order of the Honourable Court joining the Attorney-General of Oyo State as a respondent on the appeal with suit number FHC/PH/CS/149/2020 and appeal number CA/PH/282/2021, and any other order the Court may deem fit.

According to the Attorney-General of Oyo State, the government of Oyo State was unaware of the suit between the Attorney-General of Rivers State and the Federal Inland Revenue Service, FIRS, at the Federal High Court until the judgment was delivered.

Other grounds upon which the application was based include, that the decision of the Appellate Court will affect the collection of VAT by the government of Oyo State is one of the states which the judgment of the lower court recognised as entitled to collect VAT within its territorial jurisdiction.

The grounds claimed by the Oyo State government include that: “The Applicant is a necessary party to this suit being a party who will be bound by the judgment of this Honourable Court in this Appeal.

In a motion on notice also attached to the proceedings already filed before the court, Oyo State said it relied on eight grounds and declared that the state is a necessary party to be joined since it has sufficient interest in the outcome of the appeal.

The state further argued that after going through its processes, the Appellate Court will find that the application is necessary and that it has sufficient interest in the determination of the appeal as one of the states of the Federation.

It quoted several legal authorities and concluded thus: “We, therefore, urge the honourable court to resolve the sole issue raised in this application in favour of the Applicant and hold that the Applicant is a proper, desirable and necessary party to be joined in this appeal.

“In conclusion, we humbly urge your Lordships to grant this application in the interest of justice and effective determination of the issues before the Court”.

Iyabo Adebisi

Judiciary

Ogun VAT Bill 2021 Scales First, Second Reading

By Web News 533

The proposed bill on the Ogun State Value Added Tax Law, 2021 has scaled first and second readings. 

Lawmakers while extensively deliberating on the bill, unanimously agreed that the bill, when operational, would accord the State its rightful position as a viable federating unit amongst the comity of States generating worthy financial returns in the country.

In their Contribition, Mr Olakunle Sobukanla, Mr. Ganiyu Oyedeji, and Mr. Adegoke Adeyanju stressed the need for the enactment of the proposed law in the State to further improve revenue accruable to the State, with a view to ensuring a seamless funding of more developmental projects.

Other lawmakers including Mr. Kemi Oduwole, Mr. Oludaisi Elemide, and Mrs. Atinuke Bello, noted that the bill was meant to improve on the State’s financial status through tax revenue generation.

In his response, the Speaker of the house, Mr. Oluomo emphasized that the leading position of the Ogun State among the comity of States in the area of revenue generation must be complemented with equal remittance of allocation on monthly basis from the Federation account.

Oluwatoyin Adegoke