Economy

VAT Collection: Fayemi says Ekiti State awaits Supreme Court judgement

Governor Kayode Fayemi of Ekiti State has urged the Supreme Court to accelerate its judgement on the ongoing row about the collection of Value Added Tax (VAT). 

Recall that while Lagos and Rivers State have enacted laws to collect VAT generated in their states, some other states especially from the northern part of the country and Federal Inland Revenue Service (FIRS) have argued for the status quo to be maintained.  

But in a ruling on September 10, the Court of Appeal suspended the enactment of the laws pending the determination of an appeal filed by the Federal Inland Revenue Service against the judgment of the Federal High Court sitting in Port Harcourt.

Also Read: Sanwo-Olu restates call for VAT collection

Speaking in an interview with ARISE TV on Sunday, Mr Fayemi said Ekiti State will wait for the Supreme court for clarity sake before taking a decision. 

“Our take is that the supreme court should accelerate the decision on this so that we have clarity over who should be in charge of VAT – whether FIRS or states,” Fayemi said. 

“We will wait for the supreme court to have a decision on this. The important thing is that our tax system is problematic, confusing and contradictory, and we need to do a lot more to begin to clarify things. So that we can have more efficient ways of collecting taxes.”

Mr Fayemi, who is the chairman of the Nigerian Governors’ Forum (NGF), further said governors were currently looking at the legal and policy implication of the issue as they await the apex court’s decision on VAT controversies.

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