States banning sale of alcohol shouldn’t get VAT on beer, says ex-minister

States banning sale of alcohol shouldn’t get VAT on beer, says ex-minister

Isaac Adewole, a former minister of health, has called for
fiscal federalism that allows states to receive funds in accordance with what
they generate.

 

Fiscal federalism is how the federal, state, and local
governments share funding and other administrative responsibilities within a
federal system.

 

Adewole spoke on Friday on Inside Sources with Laolu Akande,
a socio-political programme on Channels Television.

 

The former minister said any state that prohibits the sale
of alcoholic drinks should not get out of the value-added tax (VAT) on such
products from the federation account.

 “I am an apostle of
fiscal and physical federalism,” Adewole 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 the VAT from alcohol. Straight forward.

 

Adewole, who was a former vice chancellor of the University
of Ibadan (UI), backed President Bola Tinubu’s call for restructuring and
resource control by sub-nationals.

 

He urged governors to allow the local government councils to
function independently.

 

“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,” he added.

 

“What is happening to our gold, bitumen, and lithium? The
resources from all of these, where are they? The only thing we know is oil
money.”

Source: States banning sale of alcohol shouldn’t get VAT on beer, says ex-minister

 - NigerianEye

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