A member of the Lagos State House of Assembly, Setonji
David, has said that the state will go ahead with the implementation of its
recently assented VAT Law despite a stay of execution by the Appeal Court in
Abuja last Friday.
The lawmaker, who represents Badagry II Constituency in the
House, stated this on Monday when he appeared as a guest on Channels
Television’s ‘Sunrise Daily’ breakfast programme.
VAT is a consumption tax paid when goods are purchased and
services are rendered. It is charged at a rate of 7.5 per cent.
Following Rivers State which signed its VAT bill into law
last month, Governor Babajide Sanwo-Olu, last Friday, signed the State VAT Bill
into law a day after it was passed by the Lagos State House of Assembly.
On the same day, Lagos asked to be joined as a respondent
alongside Rivers State in the appeal filed by the Federal Inland Revenue
Service challenging the judgment of the Federal High Court, Port Harcourt which
ruled that Rivers should commence VAT collection.
Justice Haruna Tsammani of the Appeal Court had adjourned to
September 16 to hear the application by Lagos and asked all parties to
“maintain status quo”.
‘Why Lagos followed
Rivers VAT chase’
Speaking on the television programme on Monday, David said
that Lagos would continue the implementation of the VAT law pending any order
by the Appeal Court ruling otherwise.
The lawmaker said, “In Lagos State, we have always clamoured
for true federalism. This is consumption tax from the people of Lagos and it
should be domiciled in Lagos and used for the people of Lagos. There are so
many hassles that have to do with federalism that we are practising.
“We generate over 55% of the VAT in Nigeria and we get a
paltry sum of 10%. Is that fair for a population of over 24 million. We are
happy that the Rivers State Government went to court and the court was very
clear that VAT was supposed to be a state affair. We have no choice but to
follow suit.”
Asked whether Lagos State would go ahead with the
implementation of the law despite the Court of Appeal’s ‘maintain status quo’
ruling, the lawmaker said, “The status quo is that we have enacted the law in
Lagos and the law is in existent and I believe strongly that until another
judgement is passed by the Court of Appeal to the extent that what we have done
is wrong, the law subsists.”
Continuing, he said, “By our own understanding, what
subsists in Lagos is our own law, until that law is set aside by the Court of
Appeal. So, as far as Lagos is concerned, VAT in Lagos will be collected by the
Lagos State Government.”
When further asked whether the state government would go
ahead to implement its VAT law, David said, “Correct”.
‘Lagos needs money
for infrastructural development’
The lawmaker lamented that the state does not enjoy special
status despite generating over half of the country’s VAT. “Anywhere we can get
money to fund the infrastructural development of the state, we won’t hesitate
to do it,” he said.
The lawmaker, however, said that with the implementation of
the VAT law in Lagos, the interest of small businesses has been taken care of
by the law.
‘LIRS well-equipped
to collect VAT’
“The Lagos Internal Revenue Service is well-placed, doing
excellently well and is well-equipped to collect VAT,” David noted, adding that
Lagos assisted FIRS to develop its VAT collection through the deployment of the
state personnel to Abuja.
The lawmaker said though the FIRS has gone to court, there
has been “no push back from the FIRS yet” to the state government.
‘Speedy enactment of
Lagos VAT law normal’
Commenting on the prompt passage and enactment of the VAT
law in Lagos, David said the bill passed through the normal process though it
was passed and signed into the law in less than a week.
“It depends on the exigency of the situation, we have passed
bills like that, there is nothing abnormal about it,” he said on the prompt
passage of the bill.
Recall that Mike Ozekhome (SAN), said that the ruling of the
Court of Appeal sitting in Abuja on Friday meant that the Rivers State
Government has the power to collect VAT until the court decides otherwise.
Click to signup for FREE news updates, latest information and hottest gists everyday
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com