FIRS Will Continue to Collect VAT, says Malami

By Uche Mbah

For now, the Federal Inland Revenue Service, FIRS, will continue to collect the disputed Value Added Tax, VAT, Abubakar Malami, the Attorney General of Nigeria AGN, had said.

There have been controversies based on court rulings over who has the right to collect the Value Added Tax. FIRS, only recently, had approached the National Assembly to amend the VAT law, which southern legislators are lesser disposed towards.

A Court of Appeal had asked that both parties maintain the status quo on the issue, meaning the collection of VAT should remain with the FIRS for now.

But the News Agency of Nigeria NAN, reports that Malami hinges on his belief that the status quo will not change on that ruling.

Malami told NAN in New York that the ruling of the Court of Appeal favored FIRS.

According to him, it was the Federal Inland Revenue Service (FIRS) that was saddled with the responsibility of collecting the VAT before the Rivers government approached the High Court.

“The position of not only the Federal Government but indeed the judiciary is the fact that status quo associated with the collecting of VAT should be maintained,” Malami said.

“And as far as the judicial system is concerned, the status quo as at the time the parties approached the court, it was the Federal Inland Revenue Service that was indeed collecting the value-added tax.

“So with that in mind, the Federal Government has succeeded in obtaining an order that establishes the sustenance of the status quo, which status quo is that the Federal Inland Revenue Service should continue collection.

“This is pending the determination of the cases that were instituted by states, particularly the Rivers State Government and the Lagos State government. The cases are being determined by the court.”

The Rivers Government has filed a case at the Supreme Court, urging the Apex Court to set aside the Court of Appeal’s Sept. 10 ruling ordering it and FIRS to maintain the status quo on the issue of VAT collection.

The state also pleaded with the Supreme Court to dissolve the panel of the appellate court, which gave the interim order.

“But one thing of interest is the fact that the Federal Government had indeed taken cognizance of the fact that where there exists a dispute between a State and Federal Government, it is the Supreme Court that should naturally have the jurisdiction to determine the dispute between the state and the federation.

“And we are taking steps to consider the possibility of instituting an action before the Supreme Court to have this matter determined once and for all,’’ Malami said.