States can’t collect VAT, it’s on exclusive list – Malami

State governments are not empowered to collect value-added tax (VAT) in the country because it is on exclusive legislative list, the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, has said.

The AGF gave this position on Friday night in an interview with Channels Television.

The Federal Inland Revenue Service has been at loggerheads with Rivers and Lagos State governments over VAT collection. And the matter already receiving the backing of some other state governments is current in court.

Malami, who said the collection of VAT in the country is under the exclusive legislative list, posited that only the National Assembly could make laws on VAT.

He said, “A lot has precluded the state from collecting value-added tax. One, generally speaking, as you rightly know, the issue of the value-added tax is an issue on the exclusive legislative list.

“And the implication of being in exclusive legislative list matter is that only the national assembly can legislate on it. The question that you may perhaps wish to address your mind on is whether there exists any national legislation that has conferred the power on the state to collect VAT. And my answer is ‘no’.

“In the absence of a law passed by the national assembly in that direction, no state can have a valid claim to collection of value-added tax.

“The responsibility, right and constitutional powers to legislate on collection of VAT are exclusively and constitutionally vested in the National Assembly and not in the state.

“Where the national assembly has not passed any law in that regard authorising the state to collect VAT, then it goes without saying that no state can arrogate unto itself the powers to collect VAT.”

According to the minister, it will be reckless for any state to go ahead to collect VAT, despite the court’s decision asking parties to maintain the status quo.

He said, “I don’t see any state perhaps taking the law unto its hands without allowing the judicial process to take its natural course and in breach of the prevailing legislation.

“I don’t see the states acting arbitrarily and setting a very bad precedence as far as governance is concerned with particular regard to the fact that the matter is receiving judicial determination.

“I can’t understand. I can’t perhaps bring that thought into consideration that I believe it could amount to a high level of recklessness on the part of any state government to be operating in breach and to be operating a lawless governance style as far as the Nigerian state is concerned.”