“VAT is not a Production tax Like Excise”-Northern Governors.

Northern governors have stated that their Southern counterparts are perplexed regarding the collecting of Value Added Tax.
Thye said that the Southern Governors were confusing VAT with Sales Tax.

Allowing states to collect VAT, they argue, would amount to double taxation on a large number of taxpayers.
The Southern governors stated that states have the authority to collect VAT.

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This was part of the positions taken by the Northern Governors Forum at the emergency they held today in Kaduna.

“VAT is being confused by these state governments as a sales tax. If every state enacted its own VAT Law, multiple taxation will result in increases of prices of goods and services and collapse in interstate trade.

“VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer;

“Another confusion is ignoring observation above and its “overall effect”. The reason Lagos account for our 50% Vat collection is because most of the telecommunication companies, Banks, manufacturing and other trading activities have their headquarters in Lagos with the resultant and wrongful attribution of VAT.

See also VAT Collection: Appeal Court Asks Parties to Maintain Status Quo.

“Until and unless the Supreme Court pronounces judgement on the substantive matter between Rivers State and Federal Government, the matter is sub judice and Northern States Governors Forum would respect this.”