VAT should be concurrent

To start with, VAT should be pushed to concurrent list, and states should be allowed monopoly of whatever originates from services they have oversight on, while the federal takes control of whatever falls within its assets.

A closer look at the figures being peddled as Rivers and Lagos States VAT revenues do not take cognisance of the contributions of federal assets in their domains.

Goods that are imported through Onne port going to Onitsha which will be transported through federal roads, the VAT on such goods at the point of clearing in a federal port cannot be said to belong to Rivers State. The same thing is applicable to Lagos; it cannot claim ownership of VAT collected in immigration offices on issuance of international passports or on goods cleared through the Lagos ports because they are federal assets, and it is the federal employees; customs and others that are running those places.

Ironically, the VAT figure per state is lumped together because hitherto, it is the FIRS that has been in the driver seat. A breakdown of what is collected per state should help identify what belongs to each entity; state and federal.

It is pertinent to clarify that VAT on beer and other services consumed in various states just like Lagos and Rivers, it is unfair to share the proceeds with other states.

The earlier case made by Wike before he decided to digress to the politics of beer and Sharia is, he finds himself using Rivers money to fund road and other infrastructure projects in his state while the VAT charges on such projects are thrown into federal purse and shared across the states. That is definitely a fair call. That should never be encouraged beyond when it is noticed.

If the National Assembly decides to amend whatever law to take care of it, they should let it reflect the necessary fairness.  Let it go to the concurrent list, and let states enjoy their beer proceeds. ?

That should be a more sensible and acceptable approach to it to get over the suspicions and weaponizing it for 2023 elections.