States should collect VAT on activities taking place in their spaces, says Onigbinde | The Guardian Nigeria News - Nigeria and World News

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VAT is essentially a consumption tax. It is payable at the points of purchases. It is a product of economic activity and economic productivity. To earn VAT, any state must drive activity ...

Dr. Akin Onigbinde is a Senior Advocate of Nigeria and former Speaker of the Oyo State House of Assembly. In this interview with ROTIMI AGBOLUAJE, the lawyer faulted the position of the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, on the issue of Value Added Tax debate. He also called for sanctioning of judges who grant frivolous orders, among other topical issues.

Economic activities must not be perceived only on the lenses of accruing tax revenues. Economic activities create environmental, health, infrastructural and human costs that only the states experience and the states must answer to and resolve them. The state must deal with plastic bottles, broken legs, pollution and others that attend to all aspects of production activities.

At the core of the VAT law and practice in Nigeria is the issue of the power to collect and administer proceeds of revenue accruals from the collection of tax. The artery of the revenues is the economic activities and production that throw up these revenues. The problem is not really one of law. Law, indeed, should follow the economic reality. The law must never be or be perceived to be unjust.

The agitation for the restructuring of Nigeria must be understood that it relates to both constitutional arrangement upon which Nigeria is governed and the structure of its political architecture. Nigeria had experienced earlier restructuring before now, resulting in various constitutional amendments. The last being the amendments made at various times to the 1999 Constitution.

There are cacophonies of agitations for self-determination. What will be your advise to the proponents of self-determination? The agitation for self-determination by ethnic groups must, however, be vigorously interrogated by the proponents and opponents of the demand. In Yoruba land, the Yoruba feel unjustly treated by the Fulani-led Federal Government, especially in the lopsided nature of appointments into key Federal Government positions.

Interim orders will continue to be an important tool of administration of justice. When any party can be shown to have misrepresented facts to deceive the court to obtain any order, he/she should be subjected to severe reprimand, including penalties for perjury.

 

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