The National Union of Local Government Employees has stated that the Value Added Tax should be collected by the 744 local government councils rather than the Federal Inland Revenue Service or state governments.
According to NULGE President Akeem Olatunji, who mentioned this in a chat with one of our journalists on Sunday, VAT collection by the third tier of government will have a more positive influence on communities and individuals.
Olatunji stated that local governments should be in charge of collecting VAT because “both companies and consumers dwell within the LG districts.”
On August 10, 2021, Justice Stephen Pam of the Federal High Court in Port Harcourt, the capital of Rivers State, declared that the Rivers State Government, not the FIRS, should be collecting VAT and PIT in the state.
Last Monday, the court denied FIRS’ request for a stay of execution, stating that the previous order remained in effect until it was overturned by a higher court of competent jurisdiction.
“We support the collection by the LGs because both companies and consumers reside within the LG areas for beneficial impact directly on the people and communities,” Olatunji stated in response to questions about the VAT