Gombe State Government has begged the governments of Lagos and Rivers State to reconsider their stance on collecting the Value Added Tax in their respective states.
It said it would starve other states, adding that it would set a bad precedent.
The state’s Commissioner for Finance and Economic Developmen, Muhammad Magaji, made this known while speaking at aworkshop.
Rivers State has won two cases giving it the right to collect VAT in its own state.
Lagos too is maintaining the same stand, while there have been dissenting voices.
He said, “The VAT issue will have adverse effects not only on Gombe state but almost all the states of the federation. I was part of the discussion few weeks ago by all commissioners of finance across the country.
“The realisation was that only Lagos, Rivers and probably Delta states would be able to pull through without this VAT being administered centrally, and it is our appeal that we all put sentiments behind and work towards a federation that is one, by being our brothers keepers and ensuring that what is pull together at the center is distributed to be able to balance resources across the country.
“Don’t forget that the oil producing states collect only 13 per cent derivation, so if you say every state will take whatever resources it has, that it means we are starting a very dangerous trajectory that will not augur well for the federation called Nigeria.”
He said,
