We’ve Appealed Court Judgment Stopping FG From VAT Collection – FIRS

The Federal Inland Revenue Service (FIRS) says it has appealed a recent judgment of the federal high court in Port Harcourt, Rivers state vesting power to collect Value Added Tax (VAT) and Personal Income Tax (PIT) in state government.

Last week, the court issued an order restraining FIRS from collecting VAT and Personal Income Tax in the state.

The court described the collection of VAT and PIT by the federal as unconstitutional.

In its ruling, the court directed the Rivers state government to take charge of the collection

With the landmark judgement, other state governments will also start the collection VAT in their domains.

However, in a statement on Sunday, Abdullahi Ismaila Ahmad, FIRS spokesperson, said the federal tax collection agency has appealed the judgement.

Collection Of VAT, Income Tax By FG Unconstitutional, Court Rules

FIRS said it has filed a stay of execution and advised the public to maintain status-quo on the payment of the taxes.

FIRS urged members of the public to continue payment of taxes to it in order to avoid penalties for non-compliance.

“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,” FIRS said.

“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 complying 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.”

On Wednesday, the Chartered Institute of Taxation of Nigeria (CITN), had said it will study the court judgement that invalidated the collection of both taxes by FIRS in Rivers state.

Adefisayo Awogbade, registrar/chief executive of CITN, cited two cases where courts had declared some provisions of the VAT Act unconstitutional, noting that the Rivers case was “not the first time”.

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