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Business News of Monday, 13 September 2021


VAT: Buhari will respect the final verdict - Presidency

President Muhammadu Buhari President Muhammadu Buhari

The Presidency has broken its silence on the raging controversy over the Value Added Tax (VAT).

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It said President Muhammadu Buhari will respect the final verdict on the matter as decided by the Supreme Court.

The presidential spokesman, Femi Adesina made the disclosure while speaking on Arise TV,

“Eventually, we will have a legal pronouncement, which may come from the highest court in the land…. Knowing the Buhari administration, it will obey the rule of law,”

He added: “All these states are not unanimous. You have heard some governors speaking out against the position of certain states which are so militant on this VAT issue.”

According to him, the matter will affect the ongoing conversation on fiscal federalism. He added: “The VAT is good because there have been talks about restructuring and fiscal federalism in the country.

If states eventually get their demands in respect of VAT, there will be something like fulfilling fiscal federalism. But then, fiscal federalism itself must be done within the ambits of the law.”

But, the Federal Inland Revenue Service (FIRS) insisted on continuing with the collection.

It has challenged the judgment at the Court of Appeal, which on Friday ordered the maintenance of the status quo until the determination of the appeal.

Lagos State, which generates the highest amount of VAT, has enacted its own law empowering it to collect the consumption tax in its domain.

He described the state of minds of those picking holes in the news of the profit as those that have been accustomed to hearing bad news, adding that they question its authenticity because they never thought that positive things can happen in government.

Earlier, Governor Nyesom Wike of Rivers state threatened to “take over” all offices of the Federal Inland Revenue Service (FIRS) in the oil-rich south-south state if the government agency continues with its “bullying.”

The governor spoke at a stakeholders’ meeting in Port Harcourt, the state capital while addressing business owners in the state.

Wike told the oil firms, construction companies and other business owners operating in the state to start remitting their Value Added Tax (VAT) to the state government starting from September.

Sanwo-Olu backs Wike as Lagos govt joins forces with Rivers in VAT battle against FIRS Meanwhile, the Lagos state government on Friday, September 10, applied to the Court of Appeal in Abuja to be joined as a co-respondent in the appeal filed by FIRS against Rivers state.

The FIRS is challenging the judgment of the Federal High Court, Port Harcourt, which held that Rivers state has the power to collect Value Added Tax (VAT) within its domain.

The Attorney General of Lagos, Moyosore Onigbanjo (SAN), informed the court of the state's interest to be joined as a party in the appeal.