VAT Collection: Rivers floors FIRS Again in court, Wike cautions taxpayers

A Federal High Court in Port Harcourt, on Monday, dismissed an application by the Federal Inland Revenue Service, FIRS, seeking to stop Rivers State government from enforcing an earlier court judgement vesting the power to collect Value Added Tax, VAT, within Rivers State on the state government and not FIRS.

FIRS had through a motion on notice applied for a stay of execution on the earlier judgement delivered by Justice Stephen Pam, affirming the constitutional role of the state governments to collect VAT and not FIRS.

Justice Pam, in his ruling on the FIRS application for a stay of execution, said granting same would negate the principle of equity.

He noted that the Rivers State Government through the state assembly has duly enacted Rivers State Value Added Tax No. 4, 2021, which makes it a legitimate right of the state to collect VAT.

According to the judge, every court in the country is constitutionally mandated to obey every legislation enacted by both the national and state assemblies.

He explained that the Rivers State government law on VAT remains valid until it has been set aside by a court of competent jurisdiction.