The Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami has warned that the collection of TAX in the country remains the right of the federal government.
He made this statement in an interview with the News Agency of Nigeria (NAN) in New York while speaking on the disagreement over the collection of VAT between FIRS and Rivers Government.
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It could be recalled that both Rivers and Lagos State Governments had been on loggerheads with the Federal Government over TAX collection in their states, which made the Rivers State Government approach the court.
Malami explained that the ruling of the Court of Appeal that FIRS and the Rivers Government maintain status quo favoured FIRS.
In his word, “The position of not only the Federal Government but indeed the judiciary is the fact that status quo associated with the collecting of VAT should be maintained,” Malami said.
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“And as far as the judicial system is concerned, the status quo as at the time the parties approached the court, it was the Federal Inland Revenue Service that was indeed collecting the value-added tax.
“So with that in mind, the Federal Government has succeeded in obtaining an order that establishes the sustenance of the status quo, which status quo is that the Federal Inland Revenue Service should continue collection.
“This is pending the determination of the cases that were instituted by states, particularly the Rivers State Government and the Lagos State government. The cases are being determined by the court.”
“And as far as the judicial system is concerned, the status quo as at the time the parties approached the court, it was the Federal Inland Revenue Service that was indeed collecting the value-added tax.
