Kayode ShopekanMinister of Justice and Attorney-General of the Federation (AGF), Abubakar Malami has said to find a lasting solution to the dispute between the federal government and the states on the Value Added Tax issue, the matter must be taken to the Supreme court.
According to Malami, if there exists a dispute between a state and the Federal Government, it is the Supreme Court that should naturally have the jurisdiction to determine the outcome.
In his words, “we are considering the possibility of instituting an action before the Supreme Court for the purpose of having this matter determined once and for all.”
Justice Stephen Pam of the Federal High Court in Port Harcourt had earlier granted the Rivers State government the right to collect VAT, instead of the Federal Inland Revenue Service (FIRS), paving the way for Governor Nyesom Wike to assent to the VAT Law, 2021.
Displeased FIRS, filed a motion on notice to apply for a stay of execution on the earlier judgement delivered by Justice Pam.
However, Justice Pam, refused the application on the ground that the federal agency failed to file an application to set aside the tax law recently enacted by the Rivers State House of Assembly, and that the state law on VAT was valid
The FIRS later approached the Court of Appeal in Abuja with a civil motion seeking a stay of the execution of the judgement granted by the court in Rivers, pending the determination of the case.
A three-man panel of the appellate court led by Justice Haruna Tsammani then directed all parties to maintain the status quo and refrain from taking action that would give effect to the judgement delivered by Justice Pam, pending the hearing and determination of the instant suit.
In its reaction, the Rivers State government filed an appeal at the Supreme Court to challenge the ruling of the appellate court.
It sought relief of the apex court to allow the appeal, set aside the decision of the appeal court, and dismiss the oral application for interim injection made by the FIRS.
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