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“The court’s reasoning is that if it should grant stay it is more or less like overruling itself and the court is empowered to recognize all laws enacted by the national assembly or the state house of assembly, therefore the law stands as substantive.
Gov. Nyesome Wike of Rivers state (photo credit: thisdaylive.com)
PEGASUS REPORTERS, LAGOS |SEPTEMBER 8, 2021
A suit by the Federal Inland Revenue Service, FIRS, seeking to stop the Rivers State Government from commencing collection of Value Added Tax, VAT has suffered another defeat in court according to Vanguard
The dismissal order was given by a federal high court in Port Harcourt on Monday.
FIRS in suit no FHC/PH/CS/149/2020 had approached the court seeking a Stay of Execution on the earlier judgement of the court that stopped FIRS from collecting VAT as it was constitutionally the role of state governments.
The FIRS had following the judgement against them sought the high court to stop the Rivers State Government from executing the judgement. But, Justice Stephen Dalyop Pam, in his ruling Monday, said granting the application would negate the principle of equity.
Pam noted that in as much as the state government and the state legislature has enacted a law in respect of the VAT that courts were bound to obey laws. He noted that the Rivers State Government and the State Assembly, has duly enacted Rivers State Value Added Tax No. 4, 2021, which makes it a legitimate right of the state to collect VAT.
The judge said law remained valid until it has been set aside by a court of competent jurisdiction, adding that the law enacted by the Rivers State legislature remained valid
justice Pam, said granting the prayers of FIRS would amount to committing murder, noting that the prayers cannot stand and dismissed same. Earlier, Justice Pam had read a letter that FIRS lawyers had served the court seeking for the stay of any ruling on their application.
But, in the absence of any requisite document that ought to have been attached to the letter, the Judge dismissed the letter.
Meanwhile, the Counsel for Rivers State Government, Mark Agu, commended the court for standing for justice, noting that the state assembly had already made a standing law on VAT.
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He said: “The first Defendant, FIRS, sent their appeal against the judgement of the Honourable court delivered wherein the court allowed the Rivers State Government to collect their VAT.
“Subsequently after the judgement Rivers State has its own law on that, the Rivers State Law on VAT No. 4, 2021. Having appealed, they were asking for an injunction and secondly asking for a stay on the judgement.
“Today, the court has delivered its ruling dismissing the said application for stay, though, without cost.
“The court’s reasoning is that if it should grant stay it is more or less like overruling itself and the court is empowered to recognize all laws enacted by the national assembly or the state house of assembly, therefore the law stands as substantive.
“Therefore the issues of collection of VAT as it stands today Rivers State is still entitled to still collect.”
But, counsel for FIRS, Reuben Wanogho, expressed displeasure with the stand of the court, noting that FIRS would not hesitate to appeal the ruling.
Wanogho said: “The court has delivered its ruling on the basis of how it saw the facts of the case. We do not agree with the ruling and we will take all necessary steps to challenge it. That is why the appellate System is there.
“The appellate System is there to enable us to ventilate out grievances if for any reasons the court makes a pronouncement me we do not agree with it.
“For sure we feel that the ruling should have gone in our favour but, the court has taken a position against us, so we will do the needful by taking it up immediately before the court of appeal.
“We will challenge it. And we are hopeful that at the court of appeal we should be able to find our way. The appeal system is there to correct errors.
“The natural consequences of the ruling is that the Rivers State Government will be collecting the VAT, but we will take steps to ensure that we amelioration situation as quickly as possible.”
Meanwhile, Naijanewsdirect online has reported that the Open Grazing and VAT Bills have scaled Second Reading At Lagos Assembly.
According to the portal, the Lagos State House of Assembly on Monday committed the bill on open grazing to the committee on agriculture after it scaled second reading.
The House also read for the first and second time the state’s Value Added Tax bill and asked the committee on finance which is handling it to report back on Thursday.
Speaker of the House, Rt. Hon. (Dr) Mudashiru Obasa, described the ‘Prohibition of Open Cattle Grazing Bill’ as timely and one that would ensure harmonious relationships between herders and farmers and protect the environment of the state and the southwest zone.
The Speaker also suggested that the bill should make provision for the registration of herders and prepare them for ranching.
“Allocating parcel of land is not enough but there should be the training of those who would go into ranching,” he said noting that ranching is expensive and required adequate preparation.
Concerning the bill on VAT, Speaker Obasa said it would lead to an “increase in revenue and increase in infrastructural development. This is in line with fiscal federalism that we have been talking about.”
Obasa said the VAT law when passed, would help the state meet challenges in its various sectors. He also urged the Lagos State government to do everything legally possible to ensure the judgement of a Federal High Court, Port Harcourt is sustained even up to the Supreme Court.
He lamented a situation where about 500 billion is generated from Lagos State while 300 billion is generated from other southwest states and paltry amounts are disbursed to them in return.
“It is an opportunity for us to emphasise again on the need for the consideration of true federalism,” he said.
Speaking earlier on the bill on open grazing, Hon. Bisi Yusuff (Alimosho 1), lamented the havoc that herdsmen had caused in the southwestern zone.
According to him, farmers have continuously become afraid to visit their farms thus causing a shortage of food. He also said many farmers had become indebted as they now find it difficult to pay back loans they secured.
He said it was lamentable that cattle roam the streets causing accidents and embarrassing people.
He advocated for stiffer penalties for herders caught carrying firearms.
His position was supported by Hon. Kehinde Joseph (Alimosho 2) who said open grazing in the 21st century is an aberration.
Joseph said the bill would ensure peaceful coexistence, reduce crime and help to guide the activities of herders.
On his part, Hon. Olumoh Saad Lukeman (Ajeromi-Ifelodun 1), suggested that the high court should be made to handle cases from the enforcement of the bill when passed or that the state should establish special courts for such purpose.
Hon. Gbolahan Yishawu, in his contribution, described Lagos as a cosmopolitan state and, as such, having to see cattle in the streets is worrisome.
He expressed support for the bill because, according to him, it would give a level of security to the state and help reduce economic losses. He added that Lagos has 250 hectares of land in Ikorodu and another 750 hectares on Epe for ranching.
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Hon. Tobun Abiodun (Epe 1) said it was common to see cattle going to school as if they want to learn while Hon. David Setonji (Badagry 2), recalled “a time we went on oversight function in a school here in Lagos. We were embarrassed by cattle. We had to wait for the herder to move the cattle before we embarked on our oversight function.”
Setonji suggested a collaboration between men of the Neighbourhood Safety Corps and the police in the implementation of the law when passed and assented to.
Other lawmakers who contributed during the plenary include Hon. Adedamola Richard Kasunmu, Hon. Rasheed Makinde and Hon. Sanni Okanlawon.
Sources: Naijanewsdirect/Vanguard News
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