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No
separate Value Added Tax (VAT) was paid by the House of Representatives
on the 380 units of cars Peugeot Automobile Nigeria Limited sold to the
legislative chamber in 2008, the Federal Inland Revenue Service, the
agency saddled with the task of collecting taxes and remitting same to
the government, has said.

The agency’s
statement was meant to clear the air following weeks of speculation and
allegation that the leadership of the House of Representatives paid the
tax on the cars.

The issues were
raised and cleared at a board meeting of FIRS, held on Tuesday at the
agency’s headquarters attended by a NEXT correspondent.

Speaking at the
meeting, Samuel Ogungbesan, the Acting Executive Chairman of the
agency, said from the records available, the House of Representatives
did not pay VAT on the cars.

Mr. Ogungbesan, the
Coordinating Director of Tax Operations Group (TOG), is holding the
brief for Ifueko Omoigui-Okauru, the executive chairman of FIRS, who is
currently on leave. He said FIRS was disturbed over the speculative
reports in the media on the issue.

“At FIRS, the VAT
element of our business is a multi-staged system. But what we advocate
is that it should either be paid between the earliest point of sales
and the end point of consumption. The truth of the matter is that VAT
was not paid by Reps on those cars.

“The reason why it
was not paid is that the price quoted and submitted by PAN was already
inclusive of VAT. PAN had said that the price it was quoting was
inclusive of VAT.”

Explaining how PAN
could demand VAT as part of the contract cost of the cars’ purchase,
Mr. Ogungbesan said it is possible under the multi-stage system of
paying VAT in the country.

“Of course, as a
trader, PAN could insist on collecting the amount for VAT so as to be
in charge. This might account for the reason they will demand for the
payment of VAT in the original cost.”

A non-governmental
organisation, the Human Rights Justice and Peace Foundation (HRJPF),
had accused the leadership of the House in separate petitions to the
EFCC, the Presidency, Attorney-General of the Federation and Minister
of Justice, as well as the Federal Inland Revenue Service of paying
double VAT on the cars and making about N530 million on the 380 units
car deal.

According to the
group, the payment of N117 million to the FIRS was unlawful as it
amounted to double taxation and a waste of tax payers’ money since VAT
was already included in the N2. 3 billion quoted by PAN paid for the
cars by the House.

But Dimeji Bankole,
the Speaker of the House of Representatives, has denied the allegation
and urged the EFCC to investigate and prosecute anybody found to have
contravened the laws.

However, Mr. Ogungbesan could not state categorically whether the
House of Representatives was exempted from paying VAT on public goods
and services as was also speculated before now.