The crisis between the Federal Inland Revenue Service and state governments over the collection of Value Added Tax has continued to linger despite several interventions. Photo credit: PUNCH The governments of Rivers and Lagos State who started the agitation for the state administration of VAT have all enacted laws in their states which will pave way for them to collect tax.
For the past few weeks now, the issue of who should collect Value Added Tax, VAT between the state and federal government agency, the Federal Inland Revenue Service, FIRS has continued to dominate major news headlines across the country. It could be recalled that the Rivers State governor, Nyesom Wike, and his Lagos State counterpart, Babajide Sanwo-Olu, had a strong backing from the court, which empowers them to collect VAT in their respective states.
The Federal Inland Revenue Service (FIRS) claims that the federal government would not be able to fund the 2022 financial budget worth over 16 trillion Naira because of low tax payment in the country. According to the Chairman of FIRS, Muhammad Nami, only 4.2 trillion Naira was collected as tax in nine months.
VAT: Why Gov Udom May Be Right For Saying That Decentralisation Of VAT Collection Will Favour States
The Governor of Akwa Ibom State, Governor Udom Emmanuel recently made it known that decentralisation of Value Added Tax, VAT collection will favour every single state in the country. In recent weeks, the Federal Inland Revenue Service, FIRS has been in a legal tussle with Rivers State and Lagos State governments over VAT collection.
FIRS proposes road infrastructure tax The Federal Inland Revenue Service, says it is proposing the introduction of Road Infrastructure Tax in Nigeria, to make the informal sector contribute to building a modern society. The Executive Chairman of FIRS, Muhammad Nami, disclosed this on Thursday while receiving a delegation of the Nigeria Union of Journalists, led by its National President, Chris Isiguzo, in his office, in Abuja.
The crisis between state governments and Federal Inland Revenue Service over Value Added Tax has continued and led to several court cases. Photo credit: Vanguard The governments of Rivers and Lagos states started the idea of implementing state administration of tax and some state governments in the south have now keyed into the idea.
Value Added Tax (VAT) has generated a lot of debates in recent months, Federal Inland Revenue Service (FIRS) has dragged Lagos and Rivers State Governments to Court over the right to collect tax. Governor Nyeson Wike and Babajide Sanwo-Olu are insisting that it is their right to collect value-added tax in their respective States.
As the dispute between the Federal Government, Rivers, and Lagos States over Value Added Tax VAT continues to generate controversies, about five states from the northern part of the country have joined AGF and FIRS in the lawsuit against the two states claiming the rightful collectors of the tax.
The Federal Government has said that collection of Value Added Tax, VAT, by the Federal Inland Revenue Service, FIRS, will continue despite Appeal Court ruling on the matter.Abubakar Malami, Minister of Justice and Attorney-General of the Federation, AGF, said this while reacting to the disagreement over the collection of VAT between FIRS and the governments of Lagos and Rivers States in New York.
It is no longer news that the federal government, and Southern Governors are at loggerheads over the issue of who should be responsible for the collection of Value-Added Tax (VAT) from companies. The issue which was taken to a Federal High Court by Rivers State Government, has gone up to the Supreme Court, with some Northern States backing the federal government.
Recently, the Governor Nyesom Wike-led Government of Rivers State signed into law Rivers State VAT Law 2021, and directed the State Revenue Service to commence collection of VATs in Rivers State against the hitherto collection by the Federal Inland Revenue Service (FIRS). Similarly, the Lagos State Government followed suit when Governor Babajide Sanwolu signed Lagos State VAT Law.
The crisis over the Value Added Tax (VAT), between the Federal Inland Revenue Service (FIRS) and state governments, has led to several court cases in a bid to decide who has the right to collect VAT. Photo credit: Vanguard Recall that the FIRS has been collecting the VAT in all the states of the federation and shared it percentage among the federal, state, and local governments by the FIRS before the governments of Rivers and Lagos States kicked against the idea and vowed to introduce state administration of VAT.
It is no longer news that the issue of who should collect Value Added Tax, VAT between the states and the federal government agency, the Federal Inland Revenue Service, FIRS has been taken to the apex court, the Supreme Court for the final verdict after FIRS appealed for the case.
Following the Court of Appeal's decision, the Federal Government states the Federal Inland Revenue Service (FIRS) will continue to collect Value Added Tax (VAT). Abubakar Malami, the Attorney-General of the Federation (AGF) and Minister of Justice, informed the News Agency of Nigeria (NAN) in New York about the dispute between FIRS and the Rivers Government over VAT collection.
According to the Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami, he unveiled that the Federal inland revenue plans to make the informal sector add to building an advanced society. According to Nami Muhammad, in his statement at Abuja, where he recently got a designation of the Nigeria Union of Journalists led by Chris Isiguzo, he said that this proposed road infrastructure tax would equip the Government with satisfactory finance for recovery, support and for road construction, and also this asserted scheme however would likewise give the required security for roads in the country.
It was reported recently that the House of Representatives is planning to pass bill to enable various states governments collect Value Added Tax, VAT. For weeks now, the Federal Inland Revenue Service, FIRS and the governments of Rivers and Lagos have been battling each other over VAT collection.
The Northern Governor’s forum is currently holding an emergency meeting in Kaduna, over the sharing of Value Added Tax (VAT) and other issues. Recall that since a federal high court in Port Harcourt gave a judgement that Rivers State had the right to collect its taxes, southern states and the Federal Inland Revenue Service (FIRS) have been at loggerheads over the collection of Value Added Tax, which Rivers State and Lagos State at the forefront.
Following the ruling of the Court of Appeal in the issue of Value Added Tax (VAT), the Federal Government has declared that the Federal Inland Revenue Service (FIRS). According to a statement disclosed by Mr. Abubakar Malami, The Attorney- General of the Federation (AGF), and minister of Justice, the matter was due to the disagreement over the collection of Value Added Tax between FIRS, and Rivers State government.
Muhammad Nami, the executive Chairman of Federal Inland Revenue Service (FIRS), has criticized the inefficiencies in the current stamp duty and capital gain tax collection system. The chairman said, these inefficiencies have led to poor revenue generation from these taxes. He made this known at the opening ceremony of the 2021 tax week of the Chartered Institute of Taxation of Nigeria, in Abuja on Thursday.
The Chairman of the Federal Inland Revenue Service (FIRS) Muhhamad Nami says Nigeria is a poor country with only 41 million of its over 200 million population paying taxes . He disclosed this when he was speaking at the 'Public Presentation and Breakdown of the Highlight of the 2022 Appropriation Bill' on Friday in Abuja .