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    Lagos Applies To Join Rivers In Appeal By Buhari Government To Prevent VAT Collection By States

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    Sep 10, 2021

    The Lagos State Government has applied to join the Federal Inland Revenue Service (FIRS) in its appeal against Rivers State at the Court of Appeal, Abuja Division.

     

    Lagos applied to be joined as a co-respondent in the appeal filed by the FIRS challenging the judgment of the Federal High Court, Port Harcourt.


    The Federal High Court in Port Harcourt had on August 10 restrained the FIRS from collecting VAT and personal income tax in Rivers State.

     

    The Attorney General of Lagos State, Moyosore Onigbanjo (SAN), who informed the court of their application for the Lagos State Government to be joined as a party in the appeal, argued that the application for joinder should be taken first before FIRS’ application for stay of execution.

     

    The counsel for the FIRS, Mahmoud Magaji (SAN) argued that their application for stay of execution should take precedence over the application for joinder. 

     

    The court stood down the matter for the ruling, after listening to submissions from all the parties.

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    Governor Nyesom Wike of Rivers State on Thursday signed into law the bill on Value-Added Tax (VAT) collection in the state.

     

    Wike signed the bill which was recently passed by the state House of Assembly at the Government House, Port Harcourt. 

     

    He said the judgment of the Federal High Court sitting in Port Harcourt had sufficiently addressed the illegality perpetrated by the Federal Inland Revenue Service (FIRS).

     

    On Thursday, Lagos State House of Assembly also passed the bill after a unanimous vote by the lawmakers, and a copy has been sent to Babajide Sanwo-Olu, Lagos governor, for his assent.

     

    The development has generated mixed reactions across the country.

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    Saharareporters, New York

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