The bill on Value Added Tax (VAT) collection in Rivers State was signed into law by Governor Nyesom Wike on Thursday.
At Government House in Port Harcourt, Wike signed a measure voted by the Rivers State House of Assembly into law.
He claimed that the Federal High Court's verdict in Port Harcourt had adequately addressed the illegality committed by the Federal Inland Revenue Service (FIRS).
"The Federal High Court in Port Harcourt has addressed the illegality perpetuated by the Federal Inland Revenue Services (FIRS) in the collection of VAT in states on behalf of the Federal Government."
The governor also signed the Open Rearing and Grazing Prohibition Law No. 5 of 2021 and the Child's Rights Amendment Law No. 2 of 2021 into law.
Residents Registration Agency Law No. 6 of 2021 and Naming and Renaming of Infrastructure Law No. 3 of 2021 are among the others.
When federal agencies are allowed to illegally demand and collect taxes that are supposed to be collected by states, states are financially strangled and reduced to beggars, according to Wike.
"However, we (Rivers State) are standing on the shoulders of history as the first state delegates to grab the bull by the horns and fight the federal government's illegality through the Federal Inland Revenue Service (FIRS).
"We're all aware, of course, that the states have already been strangulated. The majority of states rely on federation account allocation.
"States have been reduced to beggars, and you will rarely see one state or another travelling to Abuja to beg for a single fund," Wike remarked.
He claimed that no amount of slander or blackmail by FIRS would make what was illegal become legitimate. He disregarded the findings of the FIRS research that some states would suffer if they were allowed to collect VAT.
"In this state, we granted contracts to companies, and we paid over N30 billion to the contractors in the last month, with 7.5 percent withheld and sent to FIRS.
"If you take 7.5 percent of the N30 billion in contracts we awarded to companies in Rivers State, you're talking about about N3 billion. The state government of Rivers has never received more than N2 billion in VAT at the end of a month.
"So, I contributed more through contract award and you are giving me less, what is the justification?" Wike enquired.
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