Rivers State Governor, Nyesom Wike has said that the state was not fighting the Federal Government or any of its agencies over collection of Value Added Tax (VAT) as being insinuated in some quarters.
This is as a Senior Advocate of Nigeria (SAN), Ahmed Raji, called on the Federal Government to immediately introduce Wealth Tax Policy that would make super-rich Nigerians pay deserved tax that would be used to cater for the down-trodden citizens in the country.
Speaking 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 ambits of the Constitution.
Represented by the Attorney-General of the state, Prof. Zacchaeus Adangor (SAN), Wike maintained that both Rivers State and the federal governments 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 State Government to fight the Federal Government.
“The principle of co-equality is fundamental to a federal arrangement, that principle leads to the principle of autonomy; autonomy leads to fiscal autonomy; and fiscal autonomy leads to fiscal federalism; and 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 fiscal 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”, Wike said.
Also speaking at the event, Prof. Abiola Sani appealed to the Judiciary to make definite and definitive pronouncement on the impasse surrounding tax collection in Nigeria’s federal system.
Sani, a professor of commercial law, who was the guest lecturer at the occasion, called on the National Assembly to use the on-going Constitution amendment to bring out clear taxing powers among the three tiers of government.
In his remarks, the celebrant and a Senior Advocate of Nigeria SAN, Ahmed Raji called on the Federal Government to immediately introduce Wealth Tax Policy to make super-rich Nigerians pay the deserved tax that would be used to cater for the down-trodden citizens in the country.
The Abuja-based senior lawyer said that the suggested tax policy, if introduced and implemented, would make the super-rich Nigerians to contribute meaningfully to government’s purse to bridge the gap between the affluent and super poor in the nation.
Raji remarked that time has come for government to do real balancing between the rich and the poor in Nigeria.
He argued that in the face of harsh economic situation starring poor Nigerians in the face, the poor need to be subsidised and not to be taxed under any guise so as to balance their anger against the rich.
Raji noted that evidence were sufficient that some super-rich class own personal jets worth $50million each at a time when some families could not afford to eat twice a day, adding that the country cannot witness genuine peace under such situation.
“It is a fact that the downturn in Nigeria’s economy is having harsh and devastating effects on the poor majority Nigerians. The wide disparity between the rich and the poor should be of grave concern to patriotic Nigerians and the way out must be found.
“The gap between the rich and the poor is so much and so offensive that it can lead to break down of law and order at any moment.
“It is in the interest of justice that the super-rich should shed part of their stupendous wealth to cater for the down-trodden masses before it is too late.
“Majority of Nigerians are in absolute poverty. Over 90 percentage of the Nigerian population is in abject poverty and time has come for us, including myself to address the ugly situation.
“Any attempt to pretend that all is well may spell doom for the nation. We will be sitting on a keg of powder if we refuse to address the challenges of the poor masses now”, he warned.
He appealed to the government that the instrumentality of Wealth Tax must be adopted and used to develop the Nigerian nation as done in the United States of America, United Kingdom and France.
The senior lawyer said he opted to use the public lecture to mark his birthday so as to use it to draw attention to some burning issues and challenges that deserve public attention rather than mere merry making.
