The Federal Inland Revenue Service (FIRS) has stated that the collection of Value Added Tax (VAT) will continue. Taxpayers were told to continue the payment of their VAT to the revenue collector.
The FIRS issued a statement last night, in Abuja. The statement partly reads, “Following numerous enquiries to the Service in view of a recent judgment obtained by the Rivers State Government at the Federal High Court, Port Harcourt, which ruled that states, and not the Federal Government, are constitutionally empowered to collect VAT.” The service warned that defaulters will be penalised.
Dr. Abdullahi Ismaila Ahmad, the Director of Communications and Liaison of the agency said this move (directing taxpayers to pay VAT into its own purse) is because the government of Rivers State had taken steps in enacting a VAT law, applicable in the state.
He was reported to have said, “Since the Service has already appealed the Rivers judgment in which appeal it is seeking a stay of execution order, the status quo ante subsists on the VAT collection authority, hence taxpayers should continue to pay their VAT to the FIRS.
“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 judgment of the Federal High Court and that the 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 VAT obligations until the matter is resolved by the appellate courts.”
This move came after the Rivers State governor, Nyesom Wike signed a bill authorising Rivers state to collect VAT, instead of the collection to be made into the federal government’s purse.
