The Federal Inland Revenue Service (FIRS) on Wednesday stated that it has filed an appeal against the judgment of the Federal High Court in Rivers which held that the agency lacks the right to collect Value Added Tax (VAT) in the state.
FIRS Group Lead, Special Tax Operations, Matthew Gbonjugbola, in a news conference in Abuja, stated that it is the exclusive right of the agency to collect VAT in igeria.
Gbonjugbola noted that the enabling laws that give power to the FIRS to collect VAT seeks to protect businesses from multiple VAT.
“I can confirm to you that FIRS indeed approached an appellate court to review the judgment 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.”
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He argued that states’ collection of VAT cannot work, maintaining that the FIRS is equipped by law to do so.
He dismissed claims of plans by the agency to introduce taxation on social media in Nigeria.
A Federal High Court in Port Harcourt ruled against the FIRS collecting VAT and personal income tax in Rivers State.
VAT is a consumption tax paid when goods are purchased and services are rendered. It is charged at a rate of 7.5 percent.
