VAT: South South governors back Rivers, head to Supreme Court

Governors of the South-South geopolitical zone have declared their intention to join Rivers state at the Supreme Court in the ongoing tussle on the collection of value added tax (VAT) by states.

The governors who took the decision at their meeting in Port Harcourt on Monday, said “We Unequivocally support the decision for states to collect value added tax, and resolved to join the suit before the Supreme court.”

The governors’ decision was conveyed In a statement signed by Dr. Ifeanyi Okowa, governor of Delta State and chairman of South-South governors forum.

The governors had met under the BRACED Commission to deliberate on a number of pressing issues in the region.

Governors of the southern states, except the governor of Cross River, Ben Ayade, decided to join in the suit demanding that the consumption tax be collected by states and not remitted to the Federal Inland Revenue Service (FIRS).

Last month, the Court of Appeal granted an application by the Lagos state government to be joined as a party in the suit filed by FIRS. Oyo state had also asked the Abuja division of the court to join as a respondent in the appeal filed by the revenue agency.

In August, the Rivers division of the Federal High Court declared that the FIRS had no constitutional backing for collecting VAT in the state and granted the power to collect the consumption tax to the Rivers state government.

Justice Stephen Pam issued an order of perpetual injunction restraining FIRS and Abubakar Malami from coercing residents of Rivers to pay VAT and personal income tax to FIRS.