The Peoples Democratic Party, PDP, Imo State Chapter has alleged that the recently released data on Value Added Tax, VAT, as generated across the 36 states of the federation and Federal Capital Territory, remains a vindication of its previous stand on the dwindling fortunes of Imo economy under Governor Hope Uzodinma’s watch.
Im PDP in a press release signed by its state publicity secretary, Lancelot Obiaku, and made available to newsmen, Thursday, alleged that the governor’s leadership style has made the state “unattractive to investors.”
PDPwondered how Imo State allegedly generated the lowest VAT revenue in the whole Federation of Nigeria, adding that even the second worst performing state, Zamfara, generated N432.80 million compared to Imo’s N235.41 million; an amount PDP described as not only the lowest in the whole country but also “paltry.”
“To illustrate the dire state of Imo’s economy, the state generated the lowest VAT revenue in the entire federation, with a paltry N235.41 million.
“This amount is almost half of what the second worst-performing state, Zamfara, generated (N432.80 million).
“Before they blame it on insecurity… it is worth noting that the second-worst-performing state in the Southeast (Abia) generated three times more, while Ebonyi performed nearly ten times better, and Anambra recorded twenty times Imo’s VAT figure.
“Imo’s VAT contribution is a mere 0.2 percent of what Lagos generated, which represents an embarrassing disparity,” Imo PDP stated.
In its analysis of the nexus between the VAT figures and performance of states’ economies, Imo PDP further alleged:
“To be clear, VAT, a consumption tax levied on goods and services at each stage of production or distribution, is paid by consumers but collected by businesses and remitted to the government through the Federal Inland Revenue Service (FIRS). VAT ratio, therefore, is directly proportional to the productivity level and health of an economy.
“We are not in doubt that Imo’s dismal performance reflects the comatose state of its business environment and overall economy. Nothing can better mirror the state’s zero productivity.”
Imo PDP also decried the alleged absence of what it called “a coherent economic blueprint to reverse this decline.”
