A Federal High Court sitting in Port Harcourt, Rivers State, has dismissed a suit by the Federal Inland Revenue Service, FIRS, seeking to stop the Rivers State Government from commencing collection of Value Added Tax, VAT.
FIRS in suit no FHC/PH/CS/149/2020 had approached the court seeking a Stay of Execution on the earlier judgement of the court that stopped FIRS from collecting VAT as it was constitutionally the role of state governments.
The FIRS had following the judgement against them sought the high court to stop the Rivers State Government from executing the judgement.
But, Justice Stephen Dalyop Pam, in his ruling Monday, said granting the application would negate the principle of equity.
Pam noted that in as much as the state government and the state legislature has enacted a law in respect of the VAT that courts were bound to obey laws.
He noted that the Rivers State Government and the State Assembly, has duly enacted Rivers State Value Added Tax No. 4, 2021, which makes it a legitimate right of the state to collect VAT.
The judge said law remained valid until it has been set aside by a court of competent jurisdiction, adding that the law enacted by the Rivers State legislature remained valid
Pam, however, said granting the prayers of FIRS would amount to committing murder, noting that the prayers cannot stand and dismissed same.