The Court of Appeal, Abuja division, has granted the application of the Lagos state government as a co-respondent in the appeal filed by the Federal Inland Revenue Service (FIRS).
The FIRS is challenging the judgment of the Federal High Court, Port Harcourt, which restrained the agency from collecting Value-Added Tax (VAT) and personal income tax (PIT) in Rivers state.
At the lower court, the FIRS had appealed for a stay of execution, but the court dismissed it on the basis that it would “negate the principle of equity”.
Consequently, FIRS went to the court of appeal.
On September 10, Lagos State Attorney General, Moyosore Onigbanjo had applied to the Court to be joined as a co-respondent in the appeal. The state had also passed a VAT bill into law.
Onigbanjo had submitted that the outcome of the appeal would have a direct impact on the state.
“My lord, it is not in dispute that Lagos, one of the federating states in Nigeria, is entitled to collect VAT and that’s our interest,” he said.
“Even the appellant recognised that the Lagos state government has an interest in the matter in their affidavits in support of stay of execution where copious reference was made to the Lagos state government.”
The Muhammadu Buhari-led government has been locked in a legal battle with Rivers State government over which government should collect Value-Added Tax —state or federal.
