Appeal Court Restrains Rivers, Lagos From Collecting VAT As Gov.Sanwo-Olu Signs Bill - EDU-BIZNEWS


Friday, September 10, 2021

Appeal Court Restrains Rivers, Lagos From Collecting VAT As Gov.Sanwo-Olu Signs Bill

Court of Appeal sitting in Abuja on Friday restrained both the Rivers and Lagos State Governments from collecting Value Added Tax VAT, despite the signing of the bill by Governor Babajide Sanwo-Olu  

Sanwo-Olu  signed into law the Lagos State Value Added Tax Bill, barely 24 hours after it was passed by the State House of Assembly

The State Commissioner for Information and Strategy, Mr Gbenga Omotoso who revealed this in a statement on Friday, said the governor signed the bill after returning from an official trip.

“The Governor signed the bill for a law to impose and charge VAT on certain goods and services at about 11. 45am today,(Friday) after returning from an official trip to Abuja. By this act, the Bill has now become a Law,” the statement 

But Justice Haruna Tsanami who led two other panel of  judges of  the Appeal Court ordered that the status quo should be remained, untill determination of substantive suit filed  by the Federal Government to challenge the Federal High Court, Port Harcourt's judgement which empowered Rivers and other states to collect VAT in the country 

Governor Nyesom Wike of Rivers  State had began Implementation of the law admidst Controversy, it has generated between the Rivers State and Federal Government whose agency ,Federal Inland  Revenue Internal Revenue Service is insisting on collecting VAT across the states in the country

The Rivers State Government had earlier challenged the legality of FIRS collecting   VAT in the country

The Federal High Court sitting in Port-harcourt had ruled in favour of the state saying Federal Government has no right to power to collect VAT in Rivers or any other state in the country

Following the judgement, the Rivers State Government initiated a bill which was later passed by the State House of Assembly and assented to by the governor to empower the collection of VAT in the state

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