Court stops FIRS from VAT, PIT, other taxes collection in states
The Federal Inland Revenue Service (FIRS) has been instructed to cease levying and collecting value-added tax (VAT) and personal income tax (PIT) across the country.
On Monday, a federal high court in Port Harcourt, presided over by Justice Stephen Pam, issued the directive, arguing that the law does not support FIRS power over state governments.
The Rivers State administration had sued the tax agency (first defendant) and the Attorney General of the Federation (second defendant) over 11 reliefs, including VAT and PIT collection.
According to provisions in Part II (concurrent legislative list) of the Second Schedule of the 1999 constitution as modified, the state is the only approved collector on behalf of the Federal Government, as well as its agency.
Residents in Rivers State, on the other hand, have been subjected to FIRS requests, threats, and intimidation in order to pay PIT and VAT.
Prior to Justice Pam’s decision, FIRS refused to transfer the matter with suit No. FHC/PH/CS/149/2020 to the Court of Appeal, claiming that the FHC lacks authority to hear the case.
The judge dismissed the objection, finding that the Federal Inland Revenue Service (FIRS) does not have the constitutional authority to demand and collect VAT, withholding tax, education tax, or technology fee in any Nigerian state.
