Orbih Tasks S/South Govs Fiscal federalism Battle

South-South governors should give backing to recent legal moves to reposition the collection of Value Added Taxes, VAT, to the States as a way of entrenching the principle of fiscal federalism, Chief Dan Orbih has said.

Orbih, the National Vice Chairman, South-South, of the Peoples Democratic Party, PDP, made the call in an interview.

Noting the recent amendments to the Value Added Tax law by Rivers State, and later Lagos State, Orbih described the development as a big window for the South-South States to achieve the long desired quest for fiscal federalism.

“Yes, one must first commend the innovative and painstaking pursuit of this case by Governor Nyesom Wike.

“With this development the long desired dream of many Nigerians for equitable distribution of resources has been given a very strong push.

“I dare say that it is a bold and salutary move in restructuring our tax collection system,” Orbih said.

Noting that the quest for fiscal federalism was beyond political bias, Orbih said:

“The soundness in the economics of  Governor Nyesom Wike action  is seen in the speed with which Lagos State moved in the same direction towards pursuing the same objective. A nonpartisan action driving the  burning desire to give practical meaning to fiscal federalism.

“I call on other State governors, especially in the South-South to move with dispatch in  support of VAT collection and retention by States. We cannot continue to practice political federalism with overbearing unitary economic policies,” Orbih said.

Noting that the action  is in the interest of all, he added:

“What these amendments will achieve is that it will encourage States to  work harder in boosting economic activities and  engender healthy competitive spirit that will in the end make Nigeria better for all.”

Concluding, Orbih urged the other governors to embrace this welcome initiative and disregard  the obvious but expected opposition from the Federal Inland Revenue Service, FIRS towards the collective goal of enthroning true fiscal federalism in the country.

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