From Tony John, Port Harcourt

Lagos House of Assembly, yesterday, passed the state’s Value Added Tax (VAT) Collection Bill and the Anti-Open Cattle Grazing Bill in the state.

It passed the two bills after a unanimous votes by all the 40 lawmakers during the plenary where they were read for the third time. The bill is entitled “A Bill for a Law to Prohibit Open Cattle Grazing in Lagos State, The Trespass of Cattle on Land and for other connected Purposes.”

“A Bill for a Law to impose and charge Value Added Tax (VAT) on Certain Goods and Services, Provided for the Administration of the Tax and Other Related Matters.”

Obasa, thereafter, directed the Acting Clerk of the House, Olalekan Onafeko, to transmit a clean copy to Gov. Babajide Sanwo-Olu for his assent.

Obasa commended members of the Assembly for their passion to ensure that the state continue to develop.

The Assembly had on Wednesday held separate public hearings on the bills with stakeholders expressing support for the bills.

Meanwhile, former president of Nigerian Bar Association (NBA), Onueze C. J. Okocha (SAN) has lauded the courage of Governor Nyesom  Wike to challenge the constitutional impunity as it relates to VAT collection.

A federal high court in Port Harcourt had placed a restraining order on the Federal Inland Revenue Service (FIRS) from collecting VAT in Rivers and directed the state government to take charge of the duty.

Following the court judgement, Lagos asked FIRS to stop issuing demand notices for VAT payments in the state.

The legal luminary noted how such singular courage of the Rivers Government to seek and secure the right interpretation of the constitutional provision has motivated other sub-nationals to also explore their rights as enshrined in the constitution.

Okocha, who spoke on a TV programme monitored in Port Harcourt, stated that the Federal High Court’s declarative ruling in Port Harcourt reaffirmed that Rivers  Government was so empowered to collect VAT within its jurisdiction.

According to him, the Rivers State Government VAT Law, No. 4 of 2021, that has been assented by Governor Wike is also in line with the country’s constitutional provision.

He said: “Rivers State Government went to court against  Federal Inland Revenue Service ( FIRS) and won the case. FIRS later filed an appeal in the Court of Appeal. But returned to the Federal High Court to demand for a stay of execution. But, the court refused the application and dismissed it.”

The legal icon, who  pointed out that though the case is at the Court of Appeal and at the instance of FIRS, it could be a long legal battle that would get to the Supreme Court, but it would not stop Rivers State from collecting VAT within the State.

Okocha explained: “So, the law now is that Rivers State Government is entitled to collect Valued Added Tax (VAT) in Rivers State. Any other state can make its laws on Valued Added Tax (VAT).”