A Former Governor of Bayelsa state and a Senator representing Bayelsa West, Seriake Dickson has alleged that taxes generated in Bayelsa and other oil-producing states are often remitted to Lagos State, rather than being allocated to the states where the economic activities occur.
He emphasized that this practice is unjust and detrimental to the local economies of states like Bayelsa, Delta, and Akwa Ibom, where oil workers frequently travel to work but do not contribute their taxes to the communities they serve. He noted that he took the issue of Value Added Tax (VAT) to the Supreme Court, advocating for a more equitable distribution of tax revenues. He identified that the opportunity for reform is now, as the government is reviewing tax laws to address these anomalies and ensure that states receive the taxes generated from the consumption of goods and services within their borders.
He said in an interview with Voice TV from 0:10, ‘I gave my reasons why I’m in support of tax reform, a bill. Right now, taxes from Bayelsa are paid to Lagos State, and I don’t want that to continue. When there is a consumption of any good or services from any state, it should be calculated and paid to that state.
Oil workers have flown in from Lagos State to Bayelsa, Delta, Akwa Ibom State, and they returned. Then, at the end of the month, they pay their taxes to Lagos State government; that has to stop. I fought against that as Governor, and I took matters on VAT to the Supreme Court. I was raising issues at the NEC why that should stop, and now there’s an opportunity to review the tax laws to correct the anomalies.”