The Federal Inland Revenue Service (FIRS) has warned taxpayers, especially those in Rivers State, not to be carried away by the recent judgement of the Port Harcourt Division of the Federal High Court regarding Value Added Tax (VA).
The revenue agency rather asked the taxpayers to continue to pay their VAT to it to avoid paying penalties for failure to do so.
Its Director of Communications and Liaison Department, Abdullahi Ahmad, gave the warning in a statement in Abuja.
Abdullahi said the agency sought a stay of execution and that the status quo ante should subsist on VAT collection.
The judgement had emboldened the Governor of Rivers State, Nyesom Wike, to sign into law a bill which authorises the Rivers State Government to henceforth collect VAT in the state.
Besides VAT, the court had ruled that the state government, and not the FIRS was authorised by the Nigerian Constitution to collect personal income tax in the state.
The official said the agency decided to issue the directive following numerous enquiries in the aftermath of the recent judgment.
The FIRS spokesperson explained that the organisation had already appealed the judgment, in which it sought a stay of execution and that the status quo ante should subsist on VAT collection.
He said taxpayers should continue to pay their VAT to the FIRS.
“The attention of the FIRS has been drawn to the trending report that on 19/08/2021, the government of Rivers State took steps to enact a Value Added Tax Law for Rivers State following the Judgment of the Federal High Court, Port Harcourt Division, on August 9, 2021 in Suit No: CS/149/2020.
“The suit was about who has the constitutional duty for the collection of VAT and personal income tax in Rivers State.
“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 the 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.
“The Court of Appeal is yet to rule on the appeal from the Judgment of the Federal High Court and that the Federal High Court is yet to deliver a ruling on FIRS’ applications for stay of execution and injunction,” he explained.
Abdullahi urged the public to continue to comply with their VAT obligations “until the matter is resolved by the appellate court.” ##
