Court Dismisses FIRS’ Suit Seeking to Stop Rivers Govt From Collecting VAT

 

A suit by the Federal Inland Revenue Service, FIRS, seeking to stop the Rivers State Government from commencing collection of Value Added Tax, VAT has been dismissed.

 

According to Vanguard, the order for dismissal was given by a federal high court in Port Harcourt on Monday.

 

FIRS in suit no FHC/PH/CS/149/2020 had approached the court seeking a Stay of Execution on the earlier judgement of the court that stopped FIRS from collecting VAT as it was constitutionally the role of state governments.

 

The FIRS had following the judgement against them sought the high court to stop the Rivers State Government from executing the judgement.

 

But, Justice Stephen Dalyop Pam, in his ruling Monday, said granting the application would negate the principle of equity.

 

Pam noted that in as much as the state government and the state legislature has enacted a law in respect of the VAT that courts were bound to obey laws.

 

He noted that the Rivers State Government and the State Assembly, has duly enacted Rivers State Value Added Tax No. 4, 2021, which makes it a legitimate right of the state to collect VAT.

 

The judge said law remained valid until it has been set aside by a court of competent jurisdiction, adding that the law enacted by the Rivers State legislature remained valid

 

Pam, however, said granting the prayers of FIRS would amount to committing murder, noting that the prayers cannot stand and dismissed same.

 

Earlier, Justice Pam had read a who presided read a letter that  FIRS lawyers had served the court seeking for  stay of any ruling on their application.

 

But, in the absence of any requisite document that ought to have been attached to the letter, the Judge dismissed the letter.

 

Meanwhile, the Counsel for Rivers State Government, Mark Agu, commended the court for standing for justice, noting that the state assembly had already made a standing law on VAT.

 

Agu disclosed that FIRS had approached the court with two prayers but that they withdrew the first prayer seeking for injunction and wanted the court to stay the execution of that judgement.

 

He said: “The first Defendant, FIRS, sent their appeal against the judgement of the Honourable court delivered wherein the court allowed the Rivers State Government to collect their VAT.

 

But, counsel for FIRS, Reuben Wanogho, expressed displeasure with the stand of the court, noting that FIRS would not hesitate to appeal the ruling.

 

Wanogho said: “The court has delivered its ruling on the bases of how it saw the facts of the case. We do not agree with the ruling and we will take all necessary steps to challenge it. That is why the appellate System is there.