Taxpayers especially in Rivers State are currently in a logjam over who to remit their Value Added Tax (VAT) to between the state government and Federal Inland Revenue Service (FIRS).
Following a ruling by a Federal High Court restricting FIRS from collecting VAT and other such levies, the state House of Assembly enacted a VAT Bill, which has been signed into law by Governor Nyesom Wike last week.
House of Assembly at the Government House, Port Harcourt.
At the signing ceremony on Thursday, Wike that the judgment of the Federal High Court sitting in Port Harcourt had sufficiently addressed the illegality perpetrated by the Federal Inland Revenue Services (FIRS).
He pointed out that when agencies of the Federal Government are allowed to illegally demand and collect taxes meant for states, they strangulate the states financially and turn them to be beggars.
“But we (Rivers State) are standing on the part of history as representatives of the state to have taken the bull by the horn to challenge the illegality of the Federal Government through the Federal inland Revenue Services (FIRS).
But in a statement on Sunday, FIRS asked tax payers to continue to pay their VAT it.
The statement from Director, Communications and Liaison Department, Ismail Ahmad noted that it had appealed the judgement and a ruling was being awaited from the Appeal Court.
It reads: “the attention of the Federal Inland Revenue Service(FIRS) has been drawn to the trending report that, on 19/08/2021, the Government of Rivers State took steps to enact a Value Added Tax Law for Rivers State following the Judgment of the Federal High Court Port Harcourt Division on 9th August 2021 in Suit No: CS/149/2020.
“The suit was about who has the constitutional duty for the collection of VAT and Personal income tax in Rivers State.
“We wish to inform the general public that, before the above-mentioned steps taken by the Government of Rivers State, FIRS had lodged an appeal against the above judgment and had also filed an application for stay of execution of the Judgment as well asking the Court for an injunction pending determination of the appeal.
“All parties to the suit are aware that both applications were heard on the 19th and 20th August 2021 and are awaiting the decision of the Court.
“Given that the Court of Appeal is yet to rule on the Appeal from the Judgement of Federal High Court and that the Federal High Court is yet to deliver a ruling on FIRS’s applications for stay of execution and injunction, members of the public are advised to continue to comply with their Value Added Tax obligations until the matter is resolved by the appellate courts.”
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