Rivers State Governor, Chief Nyesom Wike has threatened to “take over” all offices of the Federal Inland Revenue Service, FIRS, in the state if the government agency continues with its “bullying”.
The governor spoke Wednesday, at a stakeholders’ meeting in Port Harcourt, the state capital, while addressing business owners in the state.
He told the oil firms, construction companies and other business owners operating in the state to start remitting their Value Added Tax to the state government through the Rivers State Internal Revenue Services, RIRS, beginning this September.
The Federal High Court sitting in Port Harcourt in its judgment last month in a suit marked FHC/PH/CS/149/2020 held that the Rivers State Government had the powers to collect VAT within its territory.
The FIRS, on Monday, prayed the court to stay execution on the judgment.
But the presiding judge, Justice Stephem Pam, rejected the application, saying granting it would negate the principle of equity.
VAT is a consumption tax paid when goods are purchased and services are rendered. It is charged at a rate of 7.5 per cent.
Speaking at the stakeholders’ meeting on Wednesday televised live on national televisions, Wike lamented about the injustice in the country saying Rivers generated N15bn in June 2021 but got N4.7bn while “Kano produced N2.8bn in June but Kano also got N2.8bn. Sometimes you don’t want to believe these things exist”.
The governor said he cannot continue to beg the Federal Government for what belongs to his state.
He warned the FIRS to desist from “bullying” the state with federal might.
“I overhead the FIRS chairman saying that he will show me the powers of the Federal Government that the Federal Government will muzzle the judiciary. It is not my business. The court has decided,” the governor said.
“All these bullying (by) FIRS. They should mind the state they are bullying. FIRS should be very careful. You don’t bully state like us…I have the political will to do a lot of things. I am not one of those governors that will shy away. If they continue to bully us, all their offices in the state, I will take,” he stated.
The governor also warned the oil companies and business owners not to remit their VAT to FIRS but the Rivers State Government.
“From this September, we will start collecting our VAT.
“We will not look back but seal up the premises of such companies,” Wike warned, adding that the state does not need the Nigeria Police Force to enforce the collection of VAT but would use the state-created security outfit backed by the law.
He added: “Rivers State is challenging FIRS from collecting VAT in Rivers State. I am not challenging FIRS from collecting VAT in 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 to anybody.
“I don’t want to be in the good book of anybody but in the good book of God.
“You don’t bully state like us. FIRS should be very careful. I have the political will to do a lot of things. If they continue to bully us, I will take all their offices in the state,”.
“I don’t want you to fall prey of the people who think they can use force to take our money.
“If you want to take advantage and say you don’t know who to pay to, it is a lie, you know”.
