FIRS Appeals Court Judgment on VAT Collection

QNdubuisi Francis in Abuja

The Federal Inland Revenue Service (FIRS) has appealed a recent judgment of a Federal High Court in Port Harcourt, Rivers State on the issue of who has the constitutional mandate to collect Value Added Tax (VAT).

The Court presided over by Justice Stephen Pam held that there was no constitutional basis for the FIRS to demand and collect VAT, Withholding Tax, Education Tax and Technology Levy in Rivers or any other state of the federation, maintaining that the constitutional powers and competence of the federal government was limited to taxation of incomes, profits and capital gains, which does not include VAT or any other species of sales, or levy other than those specifically mentioned in items 58 and 59 of the Exclusi

Following the judgement, the FIRS had promptly vowed to challenge the ruling.
To make good its position, the agency
disclosed in a statement by its Director, Communications and Liaison Department, Abdullahi Ismaila Ahmad that it had appealed the court judgement.

The statement read: “This is to inform the general public that the Federal Inland Revenue Service has lodged an appeal against the judgment of the Federal High Court Port Harcourt Judicial Division delivered by Honourable Justice Stephen Pam, in SUIT NO. FHC/PH/CS/149/2020-ATTORNEY GENERAL OF RIVERS STATE v. FEDERAL INLAND REVENUE SERVICE & ANOTHER.

“We have also sought an injunction pending appeal and a Stay of Execution of the said judgment.
“As the decision is being appealed and in view of the pending applications for injunction and stay of execution which the FIRS has filed in court against the judgement, members of the public are advised to continue to comply with the Value Added Tax obligations until the matter is resolved by the appellate courts in order to avoid accruing the consequent penalties and interest for non-compliance.”

“As the decision is being appealed and in view of the pending applications for injunction and stay of execution which the FIRS has filed in court against the judgement, members of the public are advised to continue to comply with the Value Added Tax obligations until the matter is resolved by the appellate courts in order to avoid accruing the consequent penalties and interest for non-compliance.”