Lagos state governor, Babajide Sanwo-Olu, has signed the state VAT bill into law, the bill was passed through the state House of Assembly on Thursday, September 9, before final approval.
Recalls that the Federal Inland Revenue Service (FIRS) and the Rivers State Governor, Nyesom Wike, bicker over rights to collect Value Added Tax, the former made moves to legally own the right.
The letter, dated June 1, also seeks the parliament’s approval of the establishment of the Federal Revenue Court of Nigeria.
This comes amidst moves by the Rivers State Government to stop the federal government from collecting VAT from the state.
The FIRS has been in charge of VAT collection, which is then shared among the federal, state and local governments.
Rivers, Lagos, and four other states are responsible for about 80 percent of VAT collected in Nigeria.
A federal high court in Port Harcourt on August 10, ruled that it was the right of the Rivers government to receive VAT in the state – restraining the FIRS from collecting VAT and personal income tax in Rivers State.
The state had argued that it was against the constitution to generate VAT that is later shared with other states.