VAT Collection : 774 LGAs Should Be In Charge, Not FG Or States, Says NULGE

The National Union of Local Government Employees has said that the 744 local government councils should collect the Value Added Tax and not the Federal Inland Revenue Service or state governments.

The NULGE President, Akeem Olatunji, who stated this in an interview with one of our correspondents on Sunday, said VAT collection would impact the communities and people more positively if collected by the third tier of government.

Olatunji argued that VAT collection should be the responsibility of the local councils “since both companies and consumers reside within the LG areas.”

Justice Stephen Pam of the Federal High Court in Port Harcourt, the Rivers State capital, had on August 10, 2021, ruled that the Rivers State Government and not the FIRS should be collecting VAT and Personal Income Tax in the state.

Last Monday, the court also dismissed the FIRS application for a stay of execution, noting that the earlier order remained valid until set aside by a higher court of competent jurisdiction.

But responding to questions on the VAT controversy via SMS, Olatunji said, “We support the collection by the LGs since both companies and consumers reside within the LG areas for positive impact directly on the people and communities.”