Lagos Generates 55% Of Value-Added Tax In Nigeria, Gets Only 10%—Lawmaker Says State Will Implement VAT Law

A member of the Lagos State House of Assembly, Setonji David, has opined that the state will go forward with the implementation of its just lately assented legislation on Value-Added Tax following a keep of execution by the Appeal Court in Abuja final Friday.

The lawmaker, who represents Badagry II Constituency within the House, mentioned this on Monday when he appeared as a visitor on Channels Television’s ‘Sunrise Daily’ breakfast programme.

Lagos Generates 55% Of Value-Added Tax In Nigeria, Gets Only 10%—Lawmaker Says State Will Implement VAT Law 2

Speaking on the tv programme on Monday, David famous that the interpretation of the federal government of Lagos to the courtroom ruling that they need to ‘preserve establishment’ is that they need to implement the VAT legislation within the state pending any order by the Appeal Court ruling in any other case.

David mentioned, “In Lagos State, we have always clamoured for true federalism. This is a 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.”

Speaking on whether or not Lagos State would implement the VAT legislation regardless of the Court of Appeal’s ‘maintain status quo’ ruling, the lawmaker mentioned, “The status quo is that we have enacted the law in Lagos and the law is in existence 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.

“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.”

He lamented that the state doesn’t take pleasure in particular standing regardless of producing over half of the nation’s VAT. David, nevertheless, mentioned with the implementation of the VAT legislation in Lagos, the curiosity of small companies has been taken care of by the legislation.


 “Anywhere we can get money to fund the infrastructural development of the state, we won’t hesitate to do it.

“The Lagos Internal Revenue Service is well-placed, doing excellently well and is well-equipped to collect VAT.”

He famous that although the FIRS has gone to courtroom, there was “no push back from the FIRS yet” to the state authorities.

On the immediate passage of the invoice, he mentioned: “It will depend on the exigency of the state of affairs, we now have handed payments like that, there may be nothing irregular about it.”

On Friday, the Court of Appeal in Abuja informed Rivers and Lagos State governments to take care of establishment concerning assortment of Value-Added Taxes.

Justice Haruna Simon Tsanami, in a ruling on Friday, directed that the legislation handed by Rivers State House of Assembly and assented to by Governor Nyesom Ezenwo Wike have to be placed on maintain.

The decide gave the order hours earlier than Governor Babajide Sanwo-Olu of Lagos State signed the legislation on VAT.

The appellate courtroom’s resolution adopted an software by the Federal Inland Revenue Service (FIRS), looking for a keep of execution of the order of a Rivers State excessive courtroom within the matter.

Wike just lately signed into legislation the invoice on VAT assortment within the state.

He signed the invoice which was just lately handed by the state House of Assembly on the Government House, Port Harcourt.

He mentioned the judgment of the Federal High Court sitting in Port Harcourt had sufficiently addressed the illegality perpetrated by the FIRS.

On Thursday, Lagos State House of Assembly additionally handed the invoice after a unanimous vote by the lawmakers.

However, the courtroom has issued an order of perpetual injunction restraining the FIRS and the Attorney-General of the Federation, Abubakar Malami, from amassing, demanding, threatening and intimidating residents of Rivers to pay to FIRS, personnel earnings tax and VAT.

Both Rivers and Lagos state governments have already enacted laws to present impact to the judgment in respect of VAT.

An earlier software by the FIRS to the excessive courtroom in Rivers to remain execution of the judgment was on Monday refused by Justice Stephen Dalyop Pam on the grounds that the applying would negate the precept of fairness because the state legislature had already enacted legislation on the VAT assortment.

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Lagos Generates 55% Of Value-Added Tax In Nigeria, Gets Only 10%—Lawmaker Says State Will Implement VAT Law

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