Wednesday, December 11, 2024 -The All Progressives Congress-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.
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