Adamawa becomes first northern state to support VAT reform

Adamawa becomes first northern state to support VAT reform

Story from Matthew ELOYI

Adamawa State has disclosed its readiness to consider the stance of Governor Nyesom Wike of Rivers State
on the collection of Value Added Tax (VAT) in the state, making it the first northern state to show interest in the move.

Recall that the Rivers Division of the Federal High Court in August held that the state government should take charge of VAT instead of the federal government, after Wike’s administration filed a suit seeking the power to do so, over illegality claims.

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The court, presided by Justice Stephen Pam, noted that the Rivers government and not the Federal Inland Revenue
Service (FIRS) was authorized to collect VAT.

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Wike subsequently signed into law the bill on VAT collection in the state. The Lagos State House of Assembly also the bill into law on Thursday.

Also showing interest, Solomon Kumangar, the Director-General, Media and Communications, Adamawa State Government, stressed that it will improve the northeastern state’s Internally Generated Revenues (IGR) and reduce its reliance on federal allocations.

Adamawa becomes first northern state to support VAT reform