Monday, October 25, 2021

Appeal Court orders Rivers, Lagos to stop collecting VAT

The order was issued by Justice Haruna Tsanami on Friday.

and • September 10, 2021
Lagos State governor, Babajide-Sanwo-Olu and Rivers State governor, Nyesom Wike
Lagos State governor, Babajide-Sanwo-Olu and Rivers State governor, Nyesom Wike

The Abuja Division of the Court of Appeal on Friday ordered the Rivers and Lagos authorities to stop the collection of Value Added Tax (VAT) pending determination of the application filed by the Federal Inland Revenue Service, FIRS.

The Lagos State Government sought to join as co-respondent with Rivers on the suit filed by FIRS.

The News Agency of Nigeria (NAN) reports that the appellate court held that parties should refrain from giving effect to the judgment of the Rivers court pending determination of the FIRS application.

A three-member panel led by Justice Haruna Tsammani ordered that “the status quo ante bellum be maintained” and adjourned for September 16.

The FIRS had in an appeal marked CA/PH/282/2021 sought an injunction pending appeal and a stay of execution of the Rivers court judgement on VAT collection.

A Federal High Court in Rivers in a suit marked FHC/PH/CS/149/2020 declared the collection of VAT by the federal government of Nigeria unconstitutional and Rivers the rightful body to receive personal income tax and VAT emanating from the state.

Justice Stephen Pam issued an order of perpetual injunction restraining FIRS and Abubakar Malami from coercing residents of Rivers to pay VAT and personal income tax to FIRS.

Peoples Gazette reported that the Lagos state government had started collection of VAT following the ruling from Rivers.

The Gazette reported that the FIRS had approached the National Assembly to move VAT matters to the exclusive list to grant FIRS the right to collect local consumption taxes in states.

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