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FIRS to challenge High Court ruling on VAT collection

The Federal Inland Revenue Service (FIRS) has said it will appeal the judgement barring it from collecting Value Added Tax (VAT) in Rivers State.

The tax agency lost the case to the Rivers State Government following Justice Stephen Pam’s ruling that the Concurrent Legislative List empowers only the state to demand and retrieve taxes on sales, education and other non-import tax.

Justice Pam ordered the FIRS to desist from further collection of VAT across states – a decision that is expected to have a ripple effects across regions.

In its response to the judgement, FIRS spokesperson, Abdullahi Ahmad, on Sunday, stated that the Federal tax agency has sought an injunction pending appeal and a Stay of Execution of the said judgment.

FIRS added that taxpayers should continue to pay taxes to it until the court has heard and ruled on its appeal.

“As the decision is being appealed and in view of the pending applications for 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.”

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