The Federal Inland Revenue Service (FIRS) announced that it has appealed a Federal High Court ruling that awarded the collection of Value Added Tax (VAT), to the Rivers State Government.
This was disclosed in a statement by the Director, Communications and Liaison Department of the FIRS Mr Abdullahi Ahmad, in Abuja on Sunday.
What the FIRS said
“This is to inform the general public that the FIRS has lodged an appeal against the judgment of the Federal High Court, Port Harcourt Judicial Division, delivered by Hon. Justice Stephen Pam, in SUIT NO. FHC/PH/CS/149/2020-Attorney General of Rivers State v. Federal Inland Revenue Service & Another.
“We have also sought an injunction, pending appeal, and a Stay of Execution of the said judgment.
“As the decision is being appealed and in view of the pending applications for injunction and stay of execution which the FIRS has filed in court against the judgement, members of the public are advised to continue complying with their Value Added Tax obligations.
They urged the general public to continue to comply until the matter is resolved by the appellate courts, in order to avoid accruing the consequent penalties and interest for non-compliance.
In case you missed it
Recall Nairametrics reported last week that a Federal High Court in Port Harcourt ruled that Rivers State should be responsible for receiving Value Added Tax and Personal Income Tax (PIT) in the state, not the Federal Inland Revenue Service. The Judgement was given by Justice Stephen Dalyop Pam, restricting the FIRS from collecting VAT revenue in the state.
The ruling added that no constitutional basis exists for FIRS to collect VAT, Withholding Tax and Technology Levy from any state in Nigeria as the FG’s tax powers only cover incomes, profits and capital gains.
What you should know
The Nigerian government generated a sum of N512.23 billion as Value Added Tax (VAT) in the second quarter of the year (Q2 2021), representing a 56% increase compared to N327.2 billion recorded in the corresponding period of the previous year (Q2 2020).