VAT collection: FIRS files appeal against court ruling

The Federal Inland Revenue Service (FIRS) has appealed a recent judgment of the Federal High Court in Port Harcourt Rivers State on the issue of Value Added Tax (VAT) collection.

The FIRS disclosed this in a statement by its Director, Communications and Liaison Department, Abdullahi Ismaila Ahmad.

The statement reads as follows: “This is to inform the general public that the Federal Inland Revenue Service has lodged an appeal against the judgment of the Federal High Court Port Harcourt Judicial Division delivered by Honourable Justice Stephen Pam, in SUIT NO. FHC/PH/CS/149/2020-Attorney General Of Rivers State V. Federal Inland Revenue Service & Another.

“We have also sought an injunction pending appeal and a Stay of Execution of the said judgment.

“As the decision is being appealed and in view of  the pending applications for an injunction and stay of execution which the FIRS has filed in court against the judgement, members of the public are advised to continue complying with the Value Added Tax obligations until the matter is resolved by the appellate courts in order to avoid accruing the consequent penalties and interest for non-compliance.”

It would be recalled that the Federal high court in Port Harcourt had issued an order restraining the Federal Inland Revenue Service (FIRS) from collecting value-added tax (VAT) and personal income tax (PIT) in Rivers state.

In its ruling, the court directed the Rivers State Government to take charge of the collection.

Rivers Gtate Government (plaintiff) had filed a case, with suit No. FHC/PH/CS/149/2020, against the FIRS (first defendant) and the attorney general of the federation (second defendant) over demands, threats and intimidation of the state residents to pay PIT and VAT by the tax agency.