23.1 C

FG to resolve VAT dispute at Supreme Court -Malami


1min read

THE Federal Government said it was considering resolving the ongoing value added tax (VAT) dispute between some states and the Federal Inland Revenue Service (FIRS) at the Supreme Court.

“And we are taking steps to consider the possibility of instituting an action before the Supreme Court for the purpose of having this matter determined once and for all,” said Minister of Justice and Attorney-General of the Federation (AGF) Abubakar Malami in New York on Wednesday.

“The Federal Government has indeed taken cognisance of the fact that where there exists a dispute between a state and the Federal Government, it is the Supreme Court that should naturally have the jurisdiction to determine the dispute between the state and the federation.”

Controversies have continued to grow across the country after a Port Harcourt Federal High Court ruled last month that the Rivers State Government had the powers to collect VAT within its territory.

In response through its house of assembly, Rivers State has enacted the state VAT law and immediately expressed readiness to enforce the judgment beginning from this month.

Lagos State Government has followed suit by enacting and signing the state VAT bill into law.

The state joined Rivers as a co-defendant in an appeal filed by the Federal Inland Revenue Service (FIRS) against the Federal High Court judgement.

- Advertisement -

But an Abuja Court of Appeal has ruled that all parties in the matter should maintain status quo.

Rivers State Government has asked the Supreme Court to set aside the ruling of the Court of Appeal.

It also asked the apex court to order that the substantive appeal by the FIRS and all other processes be heard and determined by a new panel of the Court of Appeal.

Ogun State has also joined the race as the bill to legalise VAT collection passed the second reading in the state house of assembly.

The Southern Governors Forum (SGF) has expressed support that VAT should be collected by states to engender fiscal federalism.

Although some states, including, Kogi, Ebonyi and Katsina, have opposed the idea, many Nigerians believe that the current VAT face-off will set the nation on the path of fiscal federalism.

Vincent Ufuoma is a reporter with The ICIR. He is a lover of God, truth, knowledge and justice.

- Advertisement -
- Advertisement -

If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Support the ICIR

We need your support to produce excellent journalism at all times.


Anambra election: Journalists demand security for media houses

JOURNALISTS have demanded beefed-up security for media houses in Anambra State ahead of the...

Handwashing: How Nigeria squandered success before COVID-19 – UNICEF

NIGERIA blew away a chance to make at least 30 per cent of its...

FG declares Tuesday public holiday to mark Eidul-Mawlid

THE Federal Government has declared Tuesday, October 19, 2021, a public holiday to mark...

Food prices on the increase despite inflation dropping to 16.63% in September

THE Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on...

Nigeria needs modern policies to stimulate financial inflows -DG, LCCI

THE newly-appointed Director-General of the Lagos Chamber of Commerce and Industry Chinyere Almona has...

Most Read


Subscribe to our newsletter