The Federal Inland Revenue Service (FIRS) on Wednesday explained its opposition to the administration of Value Added Tax by states in the country, saying it might stifle businesses and investments.
The federal agency insisted that the decision of the Federal High Court to grant powers to states to administer VAT would make it difficult for businesses to thrive.
This is just as it was gathered that the FIRS recently wrote to the National Assembly for an amendment of the constitution to accommodate VAT in the Exclusive Legislative List of the 1999 Constitution.
The development followed rising agitation by some states to collect and utilise proceeds of consumption tax, after Rivers State secured victory in court on the matter.
Notwithstanding, the Rivers State government announced the commencement of full implementation of its VAT law.
The Rivers State governor, Nyesom Wike, also registered his displeasure over the alleged plans of some government officials to move the appeal hearing from the Court of Appeal in Port Harcourt, to the Court of Appeal in Abuja in the hope of securing a stay of execution of the judgment.