The Akwa Ibom and Adamawa State governments have aligned themselves with the move by the Rivers State Government to stop the Federal Government from collecting Value Added Tax (VAT).
Solomon Kumangar, the Director-General, Media and Communications, Adamawa State Government, speaking in Yola, the state capital, said the collection of VAT by the states was the only way of reducing their dependence on federal allocations.
On its part, the Akwa Ibom State House of Assembly, said it would soon begin work on a bill that would enable it to collect VAT.
Similarly, Lagos State said it would go ahead with the VAT bill, which passed second reading in the state House of Assembly on Monday.
The governments of Ekiti, Osun and Benue states have, however, said they were still studying the situation before making any move.
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The Federal High Court sitting in Port Harcourt in its judgment last month in a suit marked FHC/PH/CS/149/2020 held that the Rivers State Government had the powers to collect VAT within its territory.
The Federal Inland Revenue Service, on Monday, prayed the court to stay execution on the judgment.
But the presiding judge, Justice Stephen Pam, rejected the application, saying granting it would negate the principle of equity.
The Lagos State Government, on Monday, also followed the path of Rivers State as a bill to empower it to collect VAT scaled second reading in the state House of Assembly.
VAT is a consumption tax paid when goods are purchased and services are rendered. It is charged at a rate of 7.5 per cent.
On Tuesday, the Adamawa State Government stated that the judgment was of interest to it.
Kumangar said the state government might seek to be joined in the Rivers State versus the FIRS VAT suit as an interested party.
He said Adamawa State, which is heavily reliant on federal allocations and overstretched by the impact of COVID-19 and post-insurgency recovery demands of rebuilding, saw the development in Rivers State as one of particular interest to it.
According to him, Adamawa State, welcomes the court ruling as another avenue for states struggling with financial problems to utilise, extend and improve their internally generated revenues.
