CUPP, APP sue FG, Buhari, others over VAT increment

The Nigerian opposition coalition (CUPP) acting through one of its alliance party members, Action Peoples Party (APP) has dragged the Federal Government, President Muhammadu Buhari, Minister of Finance, Budget and National Planning before a Federal High Court, Abuja, seeking an order setting aside the increment on Value Added Tax (VAT) imposed on Nigerians by the present APC administration.

Other defendants in the suit marked FHC/ABJ/CS/1249/2019, are the Federal Inland Revenue Service and the Attorney General of the Federation.

In the suit filed on October 17, 2019, the plaintiffs, Action Peoples Alliance and Barr Ikenga Imo Ugochinyere, prayed the court to declare that the FG, President Buhari and Finance Minister do not have the powers to unilaterally amend or override any provision of the Value Added Tax Act as it relates to the imposition of chargeable tax rate without going through the National Assembly of the Federal Republic of Nigeria for an amendment of the relevant provisions thereof.

The plaintiffs also want a declaration that the act or conduct of the 1st, 2nd and 3rd Defendants in unilaterally amending, varying, modifying or increasing the chargeable tax rate of the Value Added Tax to 7.5% without following the due process of law is null, void and of no effect whatsoever.

Also, they are seeking a declaration that the FG and Finance Minister are under a primary constitutional obligation to consider the welfare and wellbeing of the citizenry in line with the fundamental objectives and directives principles of the state policy in imposing, amending, varying and/or increasing the chargeable tax rate of the VAT as it relates to supply and consumption of goods and services in Nigeria.

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“A declaration that 1st and 3rd Defendants, by failing in their primary constitutional obligation of considering the welfare and wellbeing of the citizenry before the imposition, amendment, variation and/or increment in the chargeable tax rate of the VAT to 7.5% acted unconstitutionally, capriciously, mala fide and illegally.

Consequently, they are praying for an order setting aside the 7.5% increment, amendment, variation or howsoever described in the chargeable tax rate of the VAT as it relates to the supply and consumption of goods and services in Nigeria.

They are also seeking an order of mandatory injunction restraining the Defendants, whether by themselves, agencies, ministries, officers, agents or howsoever described from further implementing or in any other manner howsoever carrying out or giving effect to the 7.5% increment, amendment or variation in the chargeable tax rate of the VAT as it relates to the supply and consumption of goods and services in Nigeria.

The suit has been assigned to Justice Inyang Ekwo, but no date has been fixed for mention.