Lagos State Commissioner for Justice, Moyosore Onigbanjo on Wednesday said the Federal Inland Revenue Service (FIRS) must obey the judgment of the Federal High Court in Rivers State, stopping it from collecting Value Added Tax (VAT).
The court ruled that Rivers State is the only authority that should collect VAT in its jurisdiction and not FIRS.
But, the agency quickly appealed the ruling and urged companies to continue paying their VAT to its purse.
But Onigbanjo said in an interview with our correspondent that Lagos State would enforce the outcome of the Rivers State judgment in the state.
He said: “We are demanding VAT from people that seek to do business in Lagos. We have our law which will be out in a couple of days. We will make sure that the judgment of the Federal High Court in Port Harcourt is enforced to the letter.
“We are not going to relent, we are not going to give an inch to FIRS to collect VAT in Lagos State .
“FIRS must obey the judgment of the court of law.”
Lagos, by virtue of being the commercial capital, contributes the highest VAT to the federation account.
Besides, questions are being asked as to why some states that opposed alcoholic consumption are sharing from VAT paid by others on the products, especially Southern states.