*Nigeria鈥檚 Southern Governors鈥� Forum at a meeting in Enugu resolved to support the position, that collection of Value Added Tax 鈥榝alls within the powers of the states鈥� in the country

Gbenga Kayode | 绿帽献妻

The ongoing legal dispute over same issue between the Federal Inland Revenue Service (FIRS) and some states of the Federation notwithstanding, the Southern Governors鈥� Forum has expressed its full support for the collection of the Value Added Tax (VAT) by states in Nigeria.

绿帽献妻 reports the governors in a 肠辞尘尘耻苍颈辩耻茅 disclosed their common position on VAT collection by the states during their meeting attended by nine Governors and seven Deputy Governors held Thursday, September 16, 2021, in Enugu, Enugu State capital, South-East Nigeria.

The governors also disclosed that they were satisfied with the efforts of each of the 17 states to pass the anti-open grazing laws to prevent open grazing of cattle.

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About 10 of the 17 Southern states, including Ekiti, Lagos, Enugu, Osun and Ondo states, have passed anti-open grazing laws.

Earlier, the disagreement over VAT started August, when the Federal High Court sitting in Port Harcourt, Rivers State capital, in a judgment in suit number FHC/PH/CS/149/2020, held that the Rivers State Government had the powers to collect VAT within its territory in the South-South region of the country.

Expressly activating the content of the court judgement, Lagos and Rivers states have started the process of collecting VAT within their territories, but the Court of Appeal, in a ruling September 10, later stopped the collection pending the determination of an appeal filed by the Federal Inland Revenue Service against the judgment of the Federal High Court sitting in Port Harcourt.

Besides Lagos and Rivers states, Ogun State also has begun the process of passing a bill on VAT in the Ogun State House of Assembly, Abeokuta.

In lending credence to the move by their counterparts in these states, the Southern Governors at their meeting in Enugu, Thursday, also resolved to support the position, that 鈥渃ollection of VAT falls within the powers of the states.鈥�

Arakunrin Rotimi Akeredolu (SAN), Governor of Ondo State and Chairman of Southern Governors鈥� Forum, reading the resolutions of the Forum in a seven-point 肠辞尘尘耻苍颈辩耻茅, stated: 鈥淭he meeting resolved to support the position that the collection of VAT falls within the powers of the states.鈥�

Similarly, the Forum urged governors that have not enacted the anti-open grazing law in their states to do so without further delay.

Governor Akeredolu in the statement said that the governors were satisfied with the rate states were enacting and amending the anti-open grazing laws in line with the uniform template and aspiration of the Forum.

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The 肠辞尘尘耻苍颈辩耻茅 stated: 鈥淭he Southern Governors鈥� Forum expresses satisfaction with the rate at which the states in the Southern Nigeria are enacting or amending the anti-open grazing laws which align with the uniform template and aspiration of Southern Governors and encouraged the states that are yet to enact this law to do so expeditiously.

鈥淓ncouraged the full operationalisation of already agreed regional security outfits, which would meet, share intelligence and collaborate to ensure the security and safety of the region.鈥�

The statement also said: 鈥淩eaffirmed its earlier commitment to fiscal federalism as resolved at the inaugural meeting of the Forum held on Tuesday, 11th May, 2021, at Asaba, Delta State and emphasised the need for the southern states to leverage the legislative competence of their respective State Houses of Assembly as well as representation in the National Assembly to pursue its inclusion in the Nigerian Constitution through the ongoing constitutional amendment.鈥�

Appeal Court reserves ruling on Lagos application in VAT dispute

In a related development, the Court of Appeal, in Abuja, FCT, has reserved its ruling on the application for a joinder filed by the Lagos State Government as the legal dispute over the collection of Value Added Tax (VAT) continues in the West African country.

Mr. Moyesore Onigbanjo, Attorney-General and Commissioner for Justice in Lagos State and Senior Advocate of Nigeria (SAN), began the day鈥檚 hearing by taking his application for joinder in the suit, when the court resumed sitting Thursday.

Governor Babajide Sanwo-Olu of Lagos State

It was gathered the Commissioner informed the panel of judges, led by Justice Haruna Tsammani, that Lagos was entitled to collect VAT.

The VAT Act was approved by an order of the court, although it has been annulled, Onigbanjo said.

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According to him, the states of the Federation are recognised by the Nigerian Constitution to collect VAT, and noted that the Federal Inland Revenue Service recognises this fact.

The Lagos State Attorney-General said going by the submissions of the FIRS, Lagos State has already enacted the VAT law, and it would lead to another action if they were not allowed to be joined in the suit.

He, therefore, urged the court to uphold the application for joinder, arguing that the case of joinder sought to prevent multiplicity of action.

Ifedayo Adedipe, SAN, Counsel to the Rivers State Government, also supported the application for joinder by the Lagos State Government.

However, Mahmoud Magaji, SAN, Counsel to FIRS, opposed the application for joinder while relying on Section 243 of the Constitution.

The Constitution, he argued, does not support applications for joinder and Lagos State was not a party to the suit at the trial court.

Onigbanjo countered Magaji鈥檚 argument, and insisted that Lagos is one of the 36 states mentioned in the judgement of the trial court.

But after listening to the arguments of the counsels to the parties in the matter, Justice Tsammani reserved the ruling on the application for joinder to a later date to be communicated in due time, report stated.

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