VAT war: Banks, other businesses risk sanction in Rivers – Wike




Wike

The governor of Rivers State has threatened that the state government will shut down the premises of any bank or business organisation in the state that continues to pay Value Added Tax (TAX) to the federal government through the Federal Inland Service (FIRS).

The governor stated this in Port Harcourt on Wednesday during an interactive session with corporate organizations in the state.

He lamented that the federal government has purposely turned the states into beggars by making them congregate regularly in Abuja to beg for funds, instead of utilizing their potentials to develop their respective states.

The warning from Wike again brings to the fore, the ongoing cold war between the FIRS and the Rivers state government over which authority has the right to collect VAT.

Wike gave the warning while reacting to a Federal High Court ruling, which dismissed FIRS move to stop the state government from collecting Valued Added Tax (VAT) pending the determination of the matter in court.

“What we are doing is not against the law and it is obvious for everyone to see. In September, a lot of projects are earmarked to be commissioned. Kindly pay your taxes.

“The payment of taxes will ensure the revamp of critical infrastructure and we are waiting for the court ruling with FIRS before the next step,” the Governor said.