Former Minister of Health, Professor Isaac Adebowale has taken a swipe at States that banned sale of alcoholic drinks.
Adebowale stated that States that prohibit the sale of alcoholic drinks should not get out of the Value Added Tax (VAT) on beer through the federation account.
Adewole, a former Vice Chancellor of the University of Ibadan, disclosed this while speaking as a guest on Inside Sources with Laolu Akande. The socio-political programme was aired on Channels Television on Friday.
A former Health Minister, Prof Isaac Adewole, has advocated fiscal federalism where states get funds commensurate to what they bring into the federation account.
He said, “We need to look at how we share the resources of this country. If you have a law that prevents you from selling alcohol, that law should also prevent you from sharing money from alcohol. We should be honest with ourselves. States that prohibit the sale of alcohol should not share out of VAT from alcohol. Straight forward.
He added that though it was late for a return to regionalism, states should be allowed to grow on their own and based on the resources within their domains.
“Then we should also ask each State what they are bringing to the table. A situation where States only share money from oil is absurd. And that is why we are where we are today. Because the other states are not bringing anything to the table.
“What is happening to our gold, bitumen, lithium? The resources from all of these, where are they? The only thing we know is oil money.”
At the moment, many of the 19 Northern States where Sharia law is practiced forbid the sale of alcohol in their domains. In some of the States, sub-nationals established religious police known as Hisbah to enforce the ban on alcoholic drinks.
Back in 2021, talks about 7.5% VAT collection on goods including alcohol by State Governments made the headlines for months. With Rivers and Lagos States being at the forefront of the move.
Recall that a Federal High Court in Port Harcourt, Rivers State capital, had ruled in favour of States. The court stated that States, and not the Federal Inland Revenue Service (FIRS), should collect VAT and Personal Income Tax.
The FIRS had challenged the ruling of the High Court in the oil-rich South-South State.
Delivering its verdict, the appellate court ordered Lagos and Rivers States Governments to maintain status quo on the matter. The court did not give a categorical judgment, therefore, the case entered a stalemate.
source: Channels TV
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