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Directors institute backs payment of VAT at source

By Ann Godwin, Port Harcourt
20 September 2021   |   3:47 am
The Institute of Directors (IoD) has canvassed payment of Value Added Tax (VAT) at source in conformity with collections from locations and administration charges netted-off by the collector.

VAT: Panuwat Dangsungnoen/Getty Images/iStockphoto

The Institute of Directors (IoD) has canvassed payment of Value Added Tax (VAT) at source in conformity with collections from locations and administration charges netted-off by the collector.

It sought more engagement with stakeholders through webinars and stakeholders committees, among others to discuss ideas on the way forward following the controversies that have trailed VAT collection in recent times.

President of the Institute, Dr. Ije Jidenma, gave the charge at the weekend in Port Harcourt, Rivers State, after its Annual General Meeting (AGM) and report by the Chairman Port Harcourt Zone, Chidi Okoroh.

She said: “VAT is very important and the IoD is an interested party. With the ongoing controversies, we expect meetings through webinars to discuss ideas and reach a consensus on the way forward.

“A former president of the Institute and tax expert, Emmanuel Ijewere, who served as Chairman, Modified Value Added Tax Commission that gave birth to VAT, had said much. It generally makes sense that should pay VAT to the source where they get their goods and services. It is something we can eventually iron out by the time we get to the table and discuss. However, the case is now in court.”

The institute further expressed hope that the Bill seeking to grant IoD a chartered status would be passed soon and should be signed into law by the President.

She stated that IoD Nigeria Charter Bill scaled all legislative hurdles in 2018, but President Muhammadu Buhari could not sign it into law due to technical issues, which required resolution.

Jidenma revealed that the Bill was represented to the National Assembly for review in 2020 and that all the technical issues had been resolved.

“Subsequently, the Bill had been passed by the Senate and is now awaiting passage at the House of Representatives, where it has passed the first reading. The institute is hopeful that the House will give its concurrence and subsequently the Bill will be forwarded to the President for his assent,” she said.

She explained that the chartered status would professionalise directorship in Nigeria and give its members opportunity for capacity building, knowledge acquisition, expertise, practical experience and ethics, thereby setting standards in tandem with best practice.

On his part, Okoroh, outgoing Chairman of the Port Harcourt Zone, said despite the COVID-19 pandemic challenges and its adverse effects on the economy, the zone recorded some achievements that enabled its members to cross more frontiers in corporate governance and other director development areas.