(By Iheanyi Ezinwo) – Chief Ojike Wekulom has said that he retired as Deputy Director from the Federal Inland Revenue Service in 2016, and not as Assistant Director as was mistakenly reported earlier in Notable Outcome. The Abua – born tax consultant, who is based in Atlanta, United States but has been following up with developments in Rivers State drew the attention of the publisher of Notable Outcome to the error in a chat on Friday. He was of the view that the principle of origin be adopted to collect VAT at the point of sale in Rivers State.
Recall that, in a chat with Notable Outcome earlier, Chief Wekulom, who had served as Executive Chairman at the Rivers State Board of Internal Revenue during the administration of Governor Peter Odili, had volunteered some suggestions to guide the collection and administration of VAT in Rivers State.
His words: “The reason the European model adopt the destination principle is to make the prices of their goods and services comparatively low for export. So if you buy goods from UK and you want to bring it to Not, they will refund the VAT you paid on it at the airport.
When you get to Not, the customs charge you the VAT. This is on the destination principle.
“In the European model, previously paid VAT or input VAT from other jurisdictions can be capitalized. You can not claim it rather it is treated as cost of doing business and accounts for the prices you will set for your goods”.
The University of Port Harcourt pioneer student, who served as chairmen of the Rivers State Board of Internal Revenue during the administration of Dr. Peter Odili, also hinted that, “in the case of principle of origin, you charge the VAT at the point of purchase, or manufacture, or where the services are rendered . Where they are going, either in the state or other VAT jurisdictions is not your business”.
Meanwhile, Chief Ojike Wekulom, who was a staff in the Rivers State Civil Service transfered his services to the the Federal Civil Service after he came out tops in a competitive process, to represent the State at the Modified Value Added Tax Commission in 1993. He worked with the Federal Inland Revenue Service until his retirement as Deputy Director in 2016.