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FG considers taking Rivers, Lagos states to Supreme Court over VAT collection

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Abubakar Malami, SAN

The Federal Government has revealed that it is considering filing a suit at the Supreme Court in order to ensure a quick and permanent resolution to the ongoing dispute over Value Added Tax (VAT) collection between it and some state governments.

The reaction by the government follows the controversy that has trailed the Federal High Court Port Harcourt, judgement which empowered Rivers State government to collect VAT within its territory and not the Federal Inland Revenue Service (FIRS).

This disclosure was made by the Attorney General of the Federation and Minister of Justice, Abubakar Malami, on Wednesday, while chatting with journalists on the sidelines of the United Nations General Assembly in New York, United States, according to ChannelsTV.

What the Attorney General of the Federation is saying

Malami said, “The Federal Government had 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.

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.”

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He said that the  Federal Government would like the case to be sorted out once and for all, adding that the FIRS would continue to collect VAT following the directive of the court of appeal for status quo to be maintained pending the determination of the substantive suit.

What you should know

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