Katsina Governor, Aminu Bello Masari, has described the recent High Court judgment in Rivers State on Value Added Tax (VAT) as capable of causing chaos across states of the federation vowing “we will resist its implementation.”
The governor also campaigned for the review of the current revenue sharing formula which he described as unfair and unjust as it gave more resources to the Federal Government to the detriment of the states and local governments.
Masari spoke on Tuesday when a delegation from the Revenue Mobilisation and Fiscal Commission (RMAFC) paid him a sensitisation visit at Government House, Katsina.
“We have heard the judgment of the state High Court in Rivers and we have appealed against that judgment. It means people will begin to pay double VAT because if you pay VAT in Kano, at the point of departure it means when you come to Katsina you pay another VAT.
“If you pay VAT in Lagos, it means you also pay VAT all along the way until you reach your destination. It will bring a lot of burden on the people. That judgment is not fair. It is other parts of the country that make Lagos and Rivers states what they are. We have to work together as a nation and come up with something that will work for all of us.”
Masari said there was no justification for allocating over 50 per cent to the Federal Government when in reality the people who deserve such funds are in the states and local government areas.
“From 1999 to date, we have not been able to come up with a new revenue allocation formula despite constitutional provisions to do so. The formula has become stagnant. It is lopsided, it puts more resources at the centre and less resources for states and local governments. The burden and responsibilities of daily needs are at states and local government levels. The current formula has given the Federal government over 50 per cent while states and Local Governments share less than 40 per cent.
“This where the people are, this is where the problems are. This formula is stale, unfair, unjust and there has to be a change to address realities of today and prepare us for tomorrow.”
