BY DAYO ADESULU
Governor Nyesom Wike of Rivers State has on Wednesday maintained that there is no going back on his stands on Value Added Tax, VAT, adding he discovers injustice in the sharing. This is just as the authorities of the Federal Inland Revenue Service, FIRS writes the National Assembly to make the collection of tax exclusively there’s
Having received Federal High Court judgement in Rivers State to collect VAT, Wike on Wednesday said he does not care if heaven falls, adding that Rivers money is not meant for Abuja people but for the development of his state.
He alleged at the stakeholders’ meeting on Wednesday in Port Harcourt decrying the injustice in the country citing an example of how Rivers State generated N15bn in June 2021 but got N4.7bn while “Kano produced N2.8bn in June but Kano also got N2.8bn. Sometimes you don’t want to believe these things exist”.
Wike at the meeting warned Shell Petroleum Development Company and other representatives of oil companies and business owners in the state not to pay VAT to FIRS anymore.
Governor Wike without a doubt was acting on the Federal High Court judgement sitting in Port Harcourt that rules in Rivers State favour. In its judgment, last month in a suit marked FHC/PH/CS/149/2020 the Federal High Court held that the Rivers State Government had the powers to collect VAT within its territory.
Sequel to this, the Federal Inland Revenue Service, on Monday, prayed the court to stay execution on the judgment.
But the presiding judge, Justice Stephen Pam, rejected the application, saying granting it would negate the principle of equity.
In follow-up, the Federal Inland Revenue Service, on Wednesday in a desperate bid to retain the collection of the Value Added Tax, wrote the National Assembly, seeking the inclusion of VAT collection in the exclusive legislative list.
The federal tax agency is also requesting the federal lawmakers to approve, the establishment of the Federal Revenue Court of Nigeria.
However, our correspondent on Wednesday obtained a letter signed by the Executive Chairman of the FIRS, Muhammad Nami, and
This letter signed by the Executive Chairman of the FIRS was addressed to the Chairman of the Constitution Review who is also the Deputy Speaker of the House of Representatives, Idris Wase dated July 1, 2021.
The letter with references number FIRS/EC/CWREP/0416/21/037
which was received in Wase’s office on July 2, was titled, ‘Request for sponsorship of a bill for the establishment of the proposed Federal Revenue Court of Nigeria and the insertion of Value Added Tax under item 58 of the exclusive legislative list’.
The federal tax agency specifically pleaded with the nation’s apex legislative institution, to vest, exclusively, all adjudication of tax disputes, including federal tax laws, companies income tax, petroleum tax, income tax, capital gain tax, stamp duty, VAT, taxes, levies and other laws, regulations, proclamations, government notices and rules on it.
Part of the letter read, “The Federal Inland Revenue Service further proposes for the amendment of Section 251 (1) (b) of the Constitution of the FRN 1999 (amended) by removing the exclusive jurisdiction of the Federal High Court only on anything connected or related to federal tax matters since same would be vested on the proposed federal revenue court.
“The Federal Inland Revenue Service also proposes for the insertion of value-added tax immediately after Stamp Duties under item 58 part II of 2nd schedule of the 1999 Constitution of the FRN.
“The Federal Inland Revenue Service appreciates the maximum cooperation and support we are receiving from your good office on tax matters generally.
“This has boosted our morale and determination to do more for the government in tax revenue generation.
“The FIRS, therefore, wishes to further request that the House of Representatives consider the request for the establishment of the Federal Revenue Court.”
The FIRS in the letter noted that Item 59 of the Exclusive Legislative List Part 1, 2nd Schedule to the Constitution of the FRN 1999 as amended vests the powers to make laws on anything related to tax matters in Nigeria, on the National Assembly.
It added, “Historically, the Federal Revenue Court was established by the promulgation of the Federal Revenue Court Decree No.13 1973.
“However, the enactment of Section 228(1) and 230(1) of the 1979 Constitution of FRN, renamed the Revenue Court to Federal High Court.
“This was further replicated by the Federal High Court Decree (amendment) 1991Cap (60l LFN, now referred to as the Federal High Court (Amendment) Act 2005 Cap F12 LFN revised edition 2010
” This amended Section 7 of the Federal High Court Act (1991), conferred exclusive jurisdiction on the Federal High Court in relation to tax matters amongst others.
“Section 228(1) and 230(1) was further re-enacted as Section 251(1) (a) to (s), of the Constitution of FRN 1999.
“The FIRS hereby proposes for the insertion of Section 254(G) to 254 (L) in the 1999 Constitution of the FRN to provide for the establishment of Federal Revenue Court, the appointment of Chief Judge, power to make rules for the proceedings, the appointment of judges of FRC and the exclusive jurisdiction of FRC on federal tax matters.”
