More northern states team up with FIRS on VAT

There are indications that the Attorney-General of the Federation and some state governments in the north will jointly challenge the court order which permits states to collect Value Added Tax (VAT).

Following the judgment of a Federal High Court in Port Harcourt which upheld the powers of the Rivers State Government to collect VAT, Lagos, Ogun, Akwa Ibom and Oyo States had begun moves to enforce the order.

The Court of Appeal in Abuja had on September 10 ordered status quo in the matter; while it allowed an application by the Lagos State Government to join the appeal.

Rivers State is currently challenging the order for status quo order before the Supreme Court.

Sources said more states opposed to the judgment planned to team up with the Federal Inland Revenue Service in filing applications against states’ collection of VAT.

But the Solicitor-General of Kaduna State, Chris Umar, told newsmen that the state was yet to file any application for joinder.

“You must have heard the position of the Northern Governors Forum. Our position would not be far different from others. When we receive contrary instructions, we’d let you know,” he said.