It is illegal for LGAs to collect premises levy ― Court

In line with the ease of doing business drive undertaken by the Governor Ifeanyi Ugwuanyi administration in Enugu State, an Enugu high court has delivered a landmark judgement.

This judgement will ease the burden of multiple taxations levied on business operators in the state.

Delivering the judgment in Suit No: E/257/2020 Dr Afam Edeh vs Enugu East Local Government & another, the court declared that it is illegal for local government areas in Nigeria and their officials to collect business premises levies from citizens.

After hearing the argument of the plaintiff, through his counsel, Olu Omotayo (Esq), Justice Cyprian Ajah, said “such power has been donated to the state by the “Taxes and Levies (Approved list for collection) Act, Cap T2 Laws of the Federation 2011”, made by the National Assembly pursuant to Section 7 and 8, of Part 11, of the 1999 Constitution of the Federal Republic of Nigeria (As amended)”.

The court, which said it had gone through the processes filed and considered relevant legal authorities in respect of the matter went further to grant all the reliefs of the Plaintiff except ‘Relief Number D’ where the Honorable Court awarded N1 Million Naira damages to the Plaintiff”.