Imo Govt Responds to PDP Criticism on VAT Collection, Describes Claims as Misleading

The All Progressives Congress (APC)-led administration in Imo State, under Governor Hope Uzodinma, has dismissed allegations by the Peoples Democratic Party (PDP) regarding the state’s low Value Added Tax (VAT) collection, accusing the opposition party of economic ignorance.

In a statement issued by the Commissioner for Information, Public Orientation, and Strategy, Declan Emelumba, the government criticized the PDP for its “misguided and uninformed” comments on VAT dynamics in the state’s economy.

According to Emelumba, VAT is a consumption tax collected by the Federal Government, which bears no direct correlation with the economic growth or productivity of individual states. He described the PDP’s claims as “the height of economic illiteracy.”

“The PDP has once again demonstrated its crass ignorance in the economic dynamics of Value Added Tax, which is a federal consumption tax not based on production,” Emelumba stated.

The PDP had earlier accused Governor Uzodinma’s administration of failing to stimulate the state’s economy, citing inadequate infrastructure, non-payment of minimum wage, and worsening insecurity.

However, the commissioner dismissed these allegations as false and aimed at misleading the public.

Emelumba noted that if a state’s economic strength were measured by VAT earnings, Imo State’s Gross Domestic Product (GDP) would not have ranked as the fourth highest among the 36 states of the federation.

He further explained that VAT collection is influenced by factors beyond the state government’s control, such as the operations and remittances of businesses within the state.

“The low VAT collection in Imo State is not a reflection of the government’s economic and infrastructural policies. Instead, the administration has created an enabling environment that continues to attract businesses and drive economic growth,” he added.

Highlighting the government’s achievements, Emelumba mentioned that Imo’s automated civil service system has received international recognition, including commendations from the World Bank for enhancing the ease of doing business.

“The State recently won the World Bank’s trophy under the States Action on Business Enabling Reforms (SABER) and was rewarded with $4 million,” the commissioner stated.

He urged the PDP to avoid spreading falsehoods and focus on constructive engagement, emphasizing that the Uzodinma administration remains committed to driving economic growth and infrastructural development in the state.