The Federal House of Representatives is planning a law that may soon be passed backing the states of the federation on resource control; right to mining their resources and put to rest the controversy over the collection of Value Added Taxes, VAT.
It will be recalled that the issue of VAT has become an Imbroglio with several states of the federation currently in a legal battle with the Federal Government on who collects VAT on goods and services .
This is happening even while the Attorney General of the Federation, Abubakar Malami (SAN) is insisting from New York that FG should continue to collect the VAT.
He said that since the Appeal Court slammed an interlocutory injunction of maintainjng status quo on the right Rivers and Lagos States who are challenging federal power.
A bill to that effect, entitled “An Act to Alter 39, Part 1 of the Second Schedule of the 1999 Constitution as Amended to Substitute and Move the Item from the Exclusive Legislative List to the Concurrent Legislative List”, sponsored by Reps Hassan Usman Sokodabo and John Dyegh is already in the works.
The Bill proposes in part, that “The Constitution of the Federal Republic of Nigeria, 1999, is hereby altered as set out. Item 39, part 1 of the Second Schedule of the Principal Act, Altered by substituting the item and moving it from the Exclusive Legislative List, to the Concurrent List.
“Thus, item 39, Part 1 of the Second Schedule of the Constitution to be moved to the Concurrent Legislative List now read: States Government shall manage their resources, mines and minerals, including oil fields, oil mining, Values Added Tax (VAT), geological surveys as well as natural gas. 50% of the total revenue accruable from the minerals shall be retained by the state where the minerals are derived.
“30% shall be credited to the Distributable Pool Account, while the remaining 20%, shall be credited to the Federation Account”.
The piece of legislation listed for consideration in this legislative quarter, is expected to generate a considerable controversy.
A law maker told Patmos Media Line that when this law is passed eventually, “Oga Editor, e go pepper piple dem body, teach dem make dem use dem sense dey live” he surprised speaking in smarting Warri language though he is from the North.
It will be recalled that Rivers State ran to the Supreme Court to say the final word on the VAT issue and a date for judgment is yet to be fixed.
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