BREAKING: Appeal court grants Lagos application in FIRS appeal over VAT collection.


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As the war over who collects Value Added Tax continues, The court of appeal, Abuja division, has granted the prayers of the Lagos state government as a co-respondent in the appeal filed by the Federal Inland Revenue Service (FIRS).

The FIRS is challenging the judgment of the federal high court, Port Harcourt, which restrained the agency from collecting VAT and personal income tax (PIT) in Rivers state.

The agency lost its appeal at the lower court, where it appealed for a stay of execution, but the court dismissed it on the basis that it would “negate the principle of equity”.

Upon the unfavorable judgement, the FIRS went to the court of appeal.

However, on September 10, the Attorney-general of Lagos, Moyosore Onigbanjo, applied to be joined as a party in the appeal. The state had also passed a VAT bill into law.

Onigbanjo had submitted that the outcome of the appeal would have a direct impact on the state.

“My lord, it is not in dispute that Lagos, one of the federating states in Nigeria, is entitled to collect VAT and that’s our interest,” he said.

“Even the appellant recognized that the Lagos state government has an interest in the matter in their affidavits in support of stay of execution where copious reference was made to the Lagos state government.

More to follow…

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