Politics (African)1 posts
States Destroying Alcohol Should Not Enjoy Rivers Tax
States that have destroy alcoholic drinks can no longer reap the benefits of Rivers state Value Added Tax (VAT), governor Nyesom Wike has said.
During a statewide broadcast after the Federal Inland Revenue Service (FIRS) inability to get a stay-of-execution to prevent Rivers from gathering VAT from businesses in the state, Mr Wike indicated his triumph would influence states' with low income.
Rivers State had the second largest Internally Generated Revenue (IGR) in 2020, as indicated by a report acquired from the National Bureau of Statistics (NBS).
Mr Wike negatively alluded to northern states ruled by Sharia law and losing millions from the destruction of alcoholic beverages, while these states benefit from VAT from liquor consumption from different states.
He said he knew that the Rivers state government choice to gather VAT would prompt issues for a portion of these Sharia-consistent states.
"Naturally, states with ethically restrictive social policies with economic implications may be adversely affected for now,” Mr Wike said.
Over the years, the Hisbah police (enforcers of Sharia law) have destroyed millions of bottles and cans of alcoholic drinks as consumption of alcohol is considered a sin in Islam.
Kano-based distributor of alcoholic drinks, John Simon, lamented how he lost over N35 million to the Hisbah police after they destroyed thousands of his alcoholic drinks in November last year.