The Federal Inland Revenue Service (FIRS) has urged taxpayers to continue paying their Value Added Tax (VAT) to it in order to avoid penalties.
The advice was given by Mr. Abdullahi Ahmad, Director, Communications and Liaison Department of the FIRS, in a statement issued on Sunday in Abuja.
He stated that the FIRS issued the directive in response to numerous inquiries following a recent judgment obtained by the Rivers government at the Federal High Court in Port Harcourt.
The court ruled on August 9 that the Rivers government, not the FIRS, had the legal authority to collect VAT.
Following the judgment, Governor Nyesom Wike signed into law a bill on Thursday, August 19, authorizing the Rivers government to collect VAT in the state going forward.
The FIRS spokesperson explained that the organization had already appealed the judgment, in which it requested a stay of execution order, and that the status quo ante should be maintained through VAT collection.
He stated that taxpayers should continue to pay VAT to the FIRS.
“The attention of the FIRS has been drawn to the trending report that on 19/08/2021, the Government of Rivers State took steps to enact a Value Added Tax Law for Rivers State following the Judgment of the Federal High Court Port Harcourt Division on August 9, 2021 in Suit No: CS/149/2020.
“The suit was about who has the constitutional duty for the collection of VAT and Personal income tax in Rivers State.
“We wish to inform the general public that before the above-mentioned steps taken by the Government of Rivers State, FIRS had lodged an appeal against the above judgment and had also filed an application for stay of execution of the judgment as well asking the court for an injunction pending the determination of the appeal.
“All parties to the suit are aware that both applications were heard on the 19th and 20th August 2021 and are awaiting the decision of the court.
“Given that the Court of Appeal is yet to rule on the Appeal from the Judgment of Federal High Court and that the Federal High Court is yet to deliver a ruling on FIRS’s applications for stay of execution and injunction” he explained.
Until the dispute is settled by the appellate court, Ahmad asked the people to continue to comply with their VAT duties.
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