Western Region Organization Urges National Assembly To Grant States VAT Collection Powers

Olayemi Akinwunmi

The Western Region Organization (WRO) on Friday, has called on the National Assembly to amend tax reform bills, allowing states to collect and spend Value Added Tax (VAT) within their domains. This move, according to the organization, would ensure fairness and equity in the country’s tax system.

In a statement issued by the Executive Director, Mr. Banji Ayiloge, the WRO emphasized that VAT collection should be the exclusive responsibility of states. This, they believe, would enable states to generate significant revenue for development purposes.

The organization criticized the current system, where the federal government collects VAT and redistributes it to states. They described this as “unbridled state socialism” that rewards visionless leaders and creates an unequal distribution of resources.

Ayiloge argued that reverting VAT collection to states would be a significant step towards achieving equity and justice in the tax system. He recalled that VAT was initially introduced by a former Ogun State governor, Chief Bisi Onabanjo, during the Second Republic, but was later hijacked by the federal government.

The WRO urged the National Assembly to correct the “selfish acts” of past leaders who have resisted policies aimed at promoting equitable development. They emphasized the need for all regions to utilize their resources productively, citing the North’s potential for mechanized farming as an example.