The Federal Inland Revenue Service (FIRS) has asked
taxpayers not to panic over the recent court ruling by the federal high court
sitting in Port Harcourt.
The court, on Monday, dismissed FIRS’ motion for stay of
execution of the earlier judgment directing Rivers state to take charge of
value-added tax (VAT) collection.
The agency stated that “until the court of appeal, or even
the supreme court, determines the matter, taxpayers are required to continue to
comply with their value-added tax (VAT) obligations within the status quo
framework.”
Johannes Oluwatobi Wojuola, special assistant on media and
communication to the chairman of FIRS, said this in a statement on Monday.
“The FIRS having
lodged, in the Court of Appeal, both an appeal against the decision of the
Federal High Court sitting in Rivers State in Suit No. FHC/PH/CS/149/2020,
Attorney General of Rivers State Vs Federal Inland Revenue Service, and an
injunction pending appeal of the said judgement assures taxpayers that there
was no cause for alarm,” the statement reads.
“The Federal High Court ruling should not breed any
confusion as to the obligations of taxpayers. Taxpayers must continue to comply
with the Value Added Tax Act pending the final determination of the appeal.
“Taxpayers must continue to honour their tax obligations
under the VAT Act. Failure to do this would put them on a collision course with
the law.
“For the avoidance of
doubt, records of appeal have been transmitted to the appellate court. The
Service is confident that, given the extant laws, the arguments and case put
forward, it will earn a favoured judgment at the appellate court.”
Meanwhile, Nyesom Wike, Rivers state governor, has directed
the state’s Internal Revenue Service (RIRS) to fully implement and enforce the
collection of value-added tax (VAT).
The Lagos house of assembly also passed the first and second
reading of a bill seeking to empower the state government to collect
value-added tax (VAT).
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