September 23, (THEWILL) – The Federal Government has disclosed plans to pursue legal action in the Supreme Court against the Rivers and Lagos State governments to resolve the ongoing controversy over the Value Added Tax (VAT).
The Attorney General of the Federation and Minister of Justice, Abubakar Malami (SAN) made this known in a chat with newsmen in New York, United States.
Rivers and Lagos State governments are currently in court seeking legal action against the authority of the Federal Inland Revenue Service (FIRS) to collect VAT in their States.
However, fielding questions from newsmen on the development, Malami said, where there exists a dispute between a State and the Federal Government, it is the Supreme Court that should naturally have the jurisdiction to determine the dispute.
According to the AGF, “But one thing of interest is the fact that the Federal Government had indeed taken cognisance 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.”
On the the ruling of the Court of Appeal that FIRS and the Rivers State Government, maintained status quo, Malami said, the ruling means Federal Inland Revenue Service (FIRS) will continue to collect Value Added Tax (VAT), adding that the Federal Government is taken steps to take the matter to the Supreme Court.
Malami said: “The position of the Federal Government and indeed the judiciary is the fact that the status quo associated with the collecting of VAT should be maintained.
“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.”
