Wednesday, October 20, 2021

Rivers resumes VAT collection as court rejects FG’s request to vacate judgment

Rivers state government said it would seal up the business premises of any organisation that fails to comply with the state’s VAT law.

• September 6, 2021
FIRS boss and WIKE
A composite of Muhammed Nami and Nyesom Wike used to illustrate the story

Rivers State Governor Nyesom Wike has ordered the immediate enforcement of State Value Added Tax Law 2021 across the entire state, following the failure of the Muhammadu Buhari regime to secure a stay-of-execution order against the state.

In a live broadcast on Monday in Port Harcourt, Mr Wike directed corporate bodies, business entities, and individuals within its territory to comply with the state’s tax law or “face the full weight of the stipulated sanctions, including having their business premises sealed-up.”

Responding to an earlier threat by the Federal Inland Revenue Service (FIRS) to penalise taxpayers in Rivers who refuse to pay their VAT to the agency, the governor said the state government “will not tolerate any further attempt by the FIRS to sabotage or undermine our authority to freely administer our tax and other related laws in our own State.”

Mr Wike added that “Those who play with fire risk having their fingers burnt.”

A federal high court in Port Harcourt had on August 9, declared the collection of VAT and Personal Income Tax by the federal government unconstitutional.

The suit (FHC/PH/CS/149/2020) between the attorney general for Rivers state and Federal Inland Revenue Service (FIRS) as the first defendant and the attorney general of the federation, Abubakar Malami as the second defendant, was won by Rivers.

Ruling that the federal government’s constitutional powers do not include VAT collection but those items in 58 and 59 of the Exclusive Legislative List, presiding judge Stephen Pam, had declared Rivers the rightful body to receive personal income tax and VAT emanating from the state.

Mr Pam issued an order of perpetual injunction restraining FIRS and the attorney general from coercing residents of Rivers state to pay VAT and personal income tax to FIRS.

The FIRS said it had appealed the judgment and threatened to penalise taxpayers in the state who refused to pay their VAT to the agency.

The federal tax agency said it had “also sought an injunction, pending appeal, and a stay of execution of the said judgment.”

However, Mr Wike in today’s broadcast said the FIRS “failed in its attempt to frustrate the enforcement of the State’s Law on VAT with the Federal High Court’s dismissal of its application for stay-of-execution of the judgement.”

Referring to Ahmed Masari, Katsina state governor’s threat to appeal the ruling directing Rivers to begin the collection of VAT in the state, Mr Wike said, the Katsina governor was conspiring with the federal government to “rob Peter to pay Paul as the nation’s self-imposed tax master-general.”

Mr Wike added, “For us in Rivers State, we will continue to ensure and project our constitutional rights to access all possible resources we can take hold both within and outside our geographical boundaries to advance the progress of our State.”

More from Peoples Gazette

Buhari and PDP


#EndSARS now symbol of Buhari’s murderous regime: PDP

“EndSARS has become the emblem of the resistance by Nigerians against the insensitive, incompetent corrupt, divisive and decadent APC administration.”

U.S. Secret Service officers


U.S. Secret Service nabs eight Nigerian Black Axe cultists for multimillion-dollar fraud

The Black Axe defendants and other conspirators worked together from Cape Town to engage in widespread internet fraud involving romance scams and advance fee schemes.


Doctors place Queen Elizabeth on royal rest

She is resting at Windsor Castle, the world’s oldest inhabited castle.

Nigerian police officers used to illustrate the story


Woman slaps policeman, lands in court

The cook slapped one of the policemen who arrested her for being in a ‘black spot’ late at night. She was given a bail of N500, 000 with two sureties each in like sum.


#EndSARS: GoKada rider arrested for holding Nigerian flag

GoKada rider Saintus Ugwu said he was apprehended by the police while through the Lekki Toll Gate with the Nigerian flag attached to his motorcycle.


Victims join #EndSARSMemorial in Benin

Two of the men shot during the protest in Benin last year were also present at the anniversary rally.