A /Court order on VAT: Not binding on Lagos State – govt

By Florence Kalu

Lagos State governmemt has said the Friday stay of action order by the Court of Appeal in the dispute over the administration of the Value Added Tax (VAT) is not binding on her.

The state government has vowed to go ahead to implement the newly signed Value Added Tax (VAT Law) of the state, saying the Abuja Court of Appeal order “is not binding on it as it has not been joined in the matter.”

TheVAT Bill law was however assented to by Governor Babajide Sanwo-Olu of Lagos State on Friday.

Lagos State Commissioner for Information and Strategy, Mr Gbenga Omotoso, made the comment while reacting on issues about the Court order as the state is yet to be joined in the suit.

The Commissioner who stated: “I’m not a lawyer though, but by my understanding from my colleague, the state had only sought to be joined in the Rivers’ state suit and up to this moment Lagos has not been joined in the suit, so how does the order concern Lagos when it has not been joined in the suit.

“Lagos State only filed to be joined as an interested party in the matter”.

The Attorney-General and Commissioner for Justice, Moyosore Onibanjo, SAN, had also kicked against the order for the maintenance of status quo, insisting that such order could not be binding on it, since it was yet to be joined as a party in the appeal by FIRS.

The Governor signed the “bill for a law to impose and charge VAT on certain goods and services” on Friday, shortly after returning from an official trip to Abuja.

By the act, the Bill has now become a Law.

Members of the Lagos State House of Assembly had on Thursday, September 9, 2021 passed the VAT Bill, 2021 to Mr Governor for assent into law.

Earlier, the bill went through its Public Hearing stage on Wednesday, which received resounding contributions and support from stakeholders.

The recommendations of the report of the Committee on Finance were unanimously adopted as the resolutions of the House, leading to its third reading.

Thereafter, the Speaker, Mudashiru Obasa, directed the Acting Clerk of the House, Mr Olalekan Onafeko to forward clean copies of the bill to Mr Babajide Sanwo-Olu for his assent.

The three-member panel of the court on Friday ordered parties to hold their peace pending the hearing of the application filed by FIRS for stay of execution of the judgment given by Justice Steven Pam in favour of Rivers State to collect VAT in the state.

The court equally granted leave to the Lagos State Government to bring an application to be heard in the case as an interested party in the appeal filed by FIRS against the Federal High Court judgment.

It noted that Lagos State’s right would be adversely effected if not heard.

The court then adjourned till September 16 for the hearing of pending applications, including the joinder application by Lagos State.