… Experts Pick Holes In FIRS Argument
The Federal Inland Revenue Service (FIRS) on Wednesday said it has appealed the judgement of the Federal High Court in Rivers which held that the agency does not have the right to collect Value Added Tax (VAT) in the state.
But some experts disagree with the federal government agency saying the law is silent on who collects consumption or service tax, which is the value added tax while putting taxation generally under exclusive list.
“I can confirm to you that FIRS indeed approached an appellate court to review the judgement of the lower court at the Federal Court of Appeal in Rivers,” he said.
“Be assured that FIRS has filed an appeal and that one is in process and that is why we are not able to speak.”
Speaking further, Gbonjugbola said VAT collection cannot work at the sub-national level, maintaining that the FIRS is empowered by law to do so.
This is coming days after a Federal High Court in Port Harcourt delivered a judgment restraining the FIRS from collecting VAT and personal income tax in Rivers State.
But speaking on channels Television, politics Today program on Wednesday
Taiwo Oyedele, Taxation expert with PWC said while he agreed that it might be cumbersome for states to effectively and efficiently collect the tax, there is need for amicable solution rather than states going ahead to promulgate laws as soon as the court delivered the judgement.
VAT is a consumption tax paid when goods are purchased and services are rendered. It is charged at a rate of 7.5 percent.
