The Imo State government, led by Governor Hope Uzodinma, has hit back at the People’s Democratic Party (PDP) over its criticism of the state’s low Value Added Tax (VAT) collection. Declan Emelumba, the state’s Commissioner for Information, Public Orientation, and Strategy, accused the PDP of ignorance regarding the dynamics of VAT and its impact on state economies.
In a statement issued on Tuesday, Emelumba described the PDP’s claims as “mischievous and ignorant,” asserting that VAT is a consumption tax collected by the Federal Government, not directly tied to state economic growth or productivity. He further criticized the opposition party for trying to mislead the public with what he termed “false and misleading” information.
The PDP had earlier accused Uzodinma’s administration of poor economic performance, citing issues such as inadequate infrastructure, non-payment of minimum wage, and insecurity. In response, Emelumba dismissed these allegations, stating that if VAT collections were the benchmark for a state’s economic performance, Imo State’s GDP would not rank as the fourth-highest in the country.
He attributed the state’s low VAT collection to external factors beyond the government’s control, particularly the operational decisions of businesses. However, he emphasized that the state government has created a favorable business environment, including an automated civil service praised by the World Bank, contributing to Imo’s faster economic growth compared to many other states.
