VAT: We’re Waiting On Supreme Court Verdict – Rivers, Lagos Govts

The Rivers State government has said it is waiting for the verdict of the Supreme Court to know whether to begin the collection of Value Added Tax (VAT) within the state.

This as the Lagos State government also declared that it is not against the legal process instituted by the federal government by going to court over the matter.

However, the Lagos State governor, Mr. Babajide Sanwo-Olu on Sunday stressed his administration’s commitment toward delivering on his campaign promises, saying Lagos will do more if the state is allowed to collect VAT.

Rivers State government, through its lawyers, had filed an appeal at the Supreme Court against an order of the Court of Appeal sitting in Abuja on the issue of VAT collection.

Rivers State Commissioner for Information and Communications, Pastor Paulinus Nsirim, disclosed this in Port Harcourt.

He said, “You know the matter has gone to Court and even before the Supreme Court now. So, we can’t talk about a matter that is before the courts.”

The Lagos State commissioner for Information and Strategy, Mr Gbenga Omotoso affirmed that, “Lagos has a solid case in the ongoing legal dispute as the crux of the disagreement is about equity, justice and fairness. Whichever way it goes, it will also enrich our jurisprudence and enhance the way we see and relate with the Law. No matter what, Lagos will always stand for true fiscal federalism”.

Omotoso explained that the volume of air, sea and road transport activities in Lagos puts pressure on the state’s infrastructure.

He added that additional revenue from VAT will facilitate infrastructure development for faster movement of goods and services as well as economic growth for the benefit of not only Lagos but other states as prices will fall.

According to him, the state remains the smallest state in the country, yet carries the burden of so many as several ethnic groups are represented in the state.

‘’Over 80 per cent of goods imported into Nigeria come through Lagos port; over 70 per cent of foreign traffic to Nigeria comes through Lagos while the state also records more than 70 per cent of Nigeria’s vehicular traffic, despite its small landmass,’’ he said

Leave a Reply