Court
AGF, Plateau, Adamawa, Kaduna govts seek to join FIRS in VAT legal tussle
Attorney General of the Federation (AGF), and Minister of Justice, Abubakar Malami SAN, is seeking to join the Federal Inland Revenue Service (FIRS), along with governments of Adamawa, Plateau and Kaduna states ,in its appeal against the judgment of the Federal High Court in Port Harcourt that mandated the Rivers State Government to collect the Value Added Tax (VAT).
Lagos State, it would be recalled, had already won its appeal seeking to be joined with River in the suit challenging the legality of the FIRS to collect VAT on behalf of the states of the federation.
The high court had in the judgment ruled against the FIRS in the tax collection tussle and ordered that the Rivers State Government was the rightful collector of the tax, among others.
However, FIRS had challenged the judgment at the Court of Appeal seeking that high court verdict be set aside.
Sources close to the AGF and governors of the three states on Sunday in disclosed that the states would file a leave of the court to be joined in the suit on Tuesday.
Although the AGF is already a defendant in the appeal, the source hinted that the Federal Ministry of Justice under the AGF has opted to be part of the appellant in the matter so as to enable it argue effectively in support of the FIRS.
“They are going to seek to be joined in the suit as co-appellants against the federal high court’s judgment that favours Rivers State.
“These states understand the possible consequences if the final judgment at the Supreme Court goes against the FIRS. They are going to take the fight as if it is theirs,” the source stated.
“In fact, their motion papers would be ready by October 4 and will be filed on Tuesday October 5. I can confirm that one to you, the source revealed.
The source also added that more states especially Kogi and Zamfara are also looking to join the suit to form a coalition with the FIRS.
However, Dr Jibrilla Umar Gwandu, Senior Special Assistant to AGF Abubakar Malami SAN could not be reached for comment at the time of filing this report.
The decision of the three states is coming on the heels of the communiqué released by the Northern State Governors’ Forum last week where they expressed dissent and disagreement with the VAT laws of Lagos and Rivers State.
“VAT is being confused by Lagos and Rivers state governments as a sales tax. If every state government enacted its own VAT law, multiple taxation would result in increase in prices of goods and services and collapse in inter-state trade,”
Plateau State Governor, Simon Lalong had offered this while reading the communiqué of the meeting of the Governors.
