In an interview with THE SUN, PDP senior member Chief Mike Ahamba, SAN, expressed disapproval of the current framework for the distribution of Value Added Tax (VAT) in the face of planned tax reforms by President Bola Tinubu.CONTINUE FULL READING>>>>>
Ahamba argued that it is unfair for northern states that ban certain products, like alcohol, to benefit from the taxes collected from those products in other states.
Ahamba pointed out that some northern states prohibit the sale of alcohol due to religious and cultural reasons but still receive a share of the VAT collected from alcohol sales in other parts of the country, stating that this practice is unjust.
According to him, if a state decides not to allow the sale of alcohol, it should not benefit from the revenue generated from alcohol sales in other states, believing that VAT should be shared based on where the product or service is produced or sold.
This, he argues, would promote fairness and respect for each state’s choices.
Ahamba also mentioned that the current VAT sharing system causes tension between states.
Southern states, where alcohol is legally sold and taxed, feel cheated when their revenue is shared with states that do not allow those same products.
“I’m not an expert at that. I made a comment on the issue of VAT, and I said that it should be shared in accordance with production. If you don’t want people to sell alcohol in your state, you don’t take VAT from the sale of alcohol in another state. The money you don’t want anybody to earn in your state, you don’t take part in sharing it in another state. The rest I would not comment because I’m not an expert at that, but there is a lot of hullabaloo by those who know,” he said.CONTINUE FULL READING>>>>>
