VAT: Appeal court order not binding on Lagos, says commissioner

Lagos State Government says the Court of Appeal order granted Friday on Value Added Tax is not binding on the state and has therefore resolved to go ahead with the implementation of its newly signed VAT law.

Commissioner for Information and Strategy, Mr Gbenga Omotoso, stated this while reacting to the order.

The Court of Appeal had ordered both Rivers and Lagos states to maintain status quo on the collection of VAT, pending the determination of an appeal that was lodged before it by the Federal Inland Revenue Service.

Omotoso said the order was not binding on Lagos State as it had not been joined in the suit yet by the court.

He said, “I’m not a lawyer 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.

“We have not been joined in the matter, so the order is not binding on Lagos, it doesn’t concern Lagos.

“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 the FIRS.

Recall that Governor Babajide Sanwo-Olu of Lagos State on Friday, signed into law the State VAT Bill.

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.

Members of the Lagos State House of Assembly on Thursday, September 9, 2021 passed the VAT Bill, 2021 to the 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.