VAT: Imo govt replies PDP over low rating collection

By Jude Opara

The All Progressives Congress (APC) led administration of Hope Uzodinma in Imo State has replied to the People Democratic Party (PDP) on the issue of low collection of Value Added Tax (VAT) in the State, maintaining that PDP is ignorant of simple economics.
In a press statement, the Commissioner for Information, Public Orientation and Strategy, Declan Emelunba berated the PDP for its ignorance in what he described as dynamics of Value Added Tax in the economy of the State.
Emelunba stated that contrary to what he regards as mischievous and ignorant submission of the PDP, that VAT is a consumption tax collected by the Federal Government which has no correlation with the economic growth or productivity of any State.
The PDP had earlier accused Uzodinma of not doing enough to stir up the economy of the State, blaming him for lack of roads, non-payment of minimum wage, and insecurity in the State.
The Commissioner for Information, while reacting on the issue, dismissed the allegations, maintaining that the State Chapter of the PDP goofed again with the aim of deceiving the public with what he termed as false and misleading information.
He described PDP’s claims as the height of economic illiteracy, noting that if a State’s economy was measured by VAT earnings, then Imo State’s GDP, according to him, could not have been the fourth highest out of the 36 States of the Federation.
“Apart from displaying its crass ignorance in the economic dynamics of Value Added Tax, which is a consumptive, Federal tax not based on production, PDP flew off the handle to whip up sentiments based on absolute falsehood,” the Commissioner stated.
Emelumba, noted that the low rate of VAT Collection in the State is as a result of factors independent of the economic and infrastructural policies of the State.
He further noted that while the Government has no control over businesses and their operational capability, including how much they remit as VAT, the State Government has created the enabling environment to attract them to the State, adding that it was why the State economy was growing faster than that of many States.
“We have an automated civil service which has received the applause of the World Bank because it has perfected the ease of doing business.
“The State recently won the World Bank’s trophy under the States Action on Business Enabling Reforms (SABER) and was rewarded with Four Million United States Dollars,” he maintained.