VAT: FIRS threatens taxpayers amid face-off with Rivers government

The Federal Inland Revenue Service (FIRS) has threatened to penalise taxpayers in Rivers who refuse to pay their value-added tax (VAT) to the agency.

Abdullahi Ahmad, the FIRS spokesman, advised in a statement on Sunday.

He noted that the FIRS issued the directive following numerous inquiries after a recent judgment obtained by the Rivers government at the Port Harcourt Division of the Federal High Court.

The court had on August 9 ruled that the Rivers government, not the FIRS, was the rightful authority to collect VAT. Following the judgment, Governor Nyesom Wike, on August 19, signed into law a bill that authorises the Rivers government to collect VAT in the state henceforth.

The FIRS spokesperson explained that since the organisation had already appealed the judgment, seeking a stay of execution order, and that the status quo ante should subsist on VAT collection, taxpayers should continue to pay their 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 number CS/149/2020,” stated the FIRS spokesman.

The suit was about who has the constitutional duty to collect VAT and personal income tax in Rivers.

“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,” Mr Ahmad added.

According to him, FIRS has 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.”

The Court of Appeal has not ruled on the appeal, and the federal high court has yet to deliver a ruling on FIRS’ applications for stay of execution and injunction.

Mr Ahmad urged the public to continue to comply with their VAT obligations until the appellate court resolves the matter.

Credit: PG