The struggle for the collection of VAT (Value Added Tax) had been a tremendous incident in the Nigerian political struggle for the past few months, as the Abuja division of the Court of Appeal on Thursday, admitted that the Lagos State Government should proceed with its legal battle as a party to the appeal on Value Added Tax collection between Rivers State Government and the Federal Inland Revenue Service, FIRS.
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Lagos State had needed to applied to be joined as an interested party in the suit that stripped the Federal Inland Revenue Service (FIRS) of the right to collect Value Added Tax (VAT).
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Commenting on the reason why the Appellate Court made the above decision, in a three-man panel of justices led by Haruna Tsammani, on Thursday when the Court passed its verdict, it was noted the Lagos State had through its Attorney-General, proved that the state has a substantial interest in the collection of VAT, which was behind the reason why the court made an order joining Lagos State as the third (3rd) respondent in the appeal the FIRS filed to nullify the judgement of a Federal High Court in Port Harcourt, which gave Rivers State the right to collect VAT revenues within its territory.
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This was because while moving the application for Lagos State to be joined as a respondent in the appeal, Mr Moyosore Onigbanjo, who is the Attorney-General of Lagos State, told the Court that the state would be impacted by the outcome of the appeal.
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