VAT Collection Controversy: Lagos Lawmaker Insists On Collection Of VAT Despite Appeal Court Ruling

A member of the Lagos State House of Assembly, Setonji David, has maintained that the state wouldn’t stop implementing its recently signed VAT Law despite the VAT collection issues.

David insisted that Lagos will go on with its VAT collection in spite of the stay of execution obtained by the Federal Inland Revenue Service (FIRS) from the Court of Appeal in Abuja last Friday.

Brand News Day Nigeria gathers that the lawmaker added that the state government would continue the VAT Collection in Lagos until the Court of Appeal rules against it.

According to Punch, this was made known by the lawmaker, who represents Badagry II Constituency in the House, while appearing as a guest on a Channels Television breakfast programme, Sunrise Daily, on Monday.

David who said that the state has always clamoured for true federalism lamented that the state generates over 55% of the VAT in Nigeria but gets a paltry 10%.

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He said, “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.

VAT Collection Controversy: Lagos Lawmaker Insists On Collection Of VAT Despite Appeal Court Ruling

“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.”

When asked whether Lagos State would go ahead with the implementation of the law despite the Court of Appeal’s ‘maintain status quo’ ruling, the lawmaker said, “The status quo is that we have enacted the law in Lagos and the law is inexistent 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.”

On the speedy passage and enactment of the VAT law in Lagos, David said the bill passed through the normal process though it was passed and signed into the law in less than a week.

He said, “It depends on the exigency of the situation, we have passed bills like that, there is nothing abnormal about it.’’