Imo lowest record in VAT evidence of dying economy – PDP

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 the Federal Capital Territory, remains a vindication of its previous stand on the dwindling fortunes of Imo economy under Governor Hope Uzodinma’s watch.

Imo PDP in a press release signed by its state publicity secretary, Lancelot Obiaku, and made available to newsmen, alleged that the Governor’s leadership style had made the state “unattractive to investors.”

The party wondered how the 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 the 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).

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“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,” he said.

The publicity secretary of the party revealed that Imo’s VAT contribution was a mere 0.2 percent of what Lagos generated, which represents an embarrassing disparity, pointing out that in its analysis of the nexus between the VAT figures and performance of States’ economies, the State recorded what he described as very poor performance.

“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,” the party declared.

Imo PDP also decried the alleged absence of what it called coherent economic blueprint to reverse the decline.