The Imo State government has hit back at the People’s Democratic Party (PDP) over allegations of poor Value Added Tax (VAT) collection, labeling the party’s claims as “economic illiteracy.” Commissioner for Information, Declan Emelumba, clarified in a statement on Wednesday that VAT is a consumption tax collected by the Federal Government, unrelated to a state’s productivity or economic growth.
Emelumba dismissed the PDP’s criticism of Governor Hope Uzodinma’s administration, which included allegations of economic stagnation, poor infrastructure, and non-payment of minimum wage. The Commissioner described these accusations as “false and misleading,” accusing the PDP of deceiving the public.
He pointed out that Imo State’s economy is one of the fastest-growing in Nigeria, with the State ranked fourth in GDP among the 36 states. “If the economy of a state is determined by VAT collection, then the PDP has once again displayed crass ignorance about economic dynamics,” Emelumba stated.
The Commissioner also noted that VAT collection is influenced by factors beyond state policies, including business operations and remittances, adding that the Uzodinma-led government has created an enabling environment for businesses to thrive. He highlighted Imo’s recent achievements, including recognition from the World Bank through its States Action on Business Enabling Reforms (SABER) program, which earned the State a $4 million reward.
Emelumba argued that PDP’s claims fail to consider the automated civil service system and ongoing infrastructure projects driving growth in Imo State. “The State has received international acclaim for fostering ease of doing business, proving that the economy is heading in the right direction,” he said.
The Uzodinma administration reaffirmed its commitment to economic progress and dismissed the PDP’s allegations as politically motivated attempts to mislead the public.
