VAT row: FG eyes out-of-court settlement - Punch Newspapers

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The Federal Government has hinted that it may explore an out-of-court solution to the lingering legal battle between its agency, Federal Inland Revenue Service, and Rivers and Lagos states over the collection of Value Added Tax.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, noted that efforts were ongoing on the issue but she did not give details as the matter was subjudice.Politics Today on Thursday night, Ahmed said she hoped there would be a political solution to the issue rather than a protracted court case.

Lagos State, whose request for joinder as a respondent in the suit before the Court of Appeal was also granted by the court, also enacted its own VAT law. The governor, Babajide Sanwo-Olu, signed the bill into law on September 10. When asked if the Federal Government was reaching out to the governors and if its representatives had met any of the governors over the matter, she said, “There are a lot of efforts going on right now. As I said, I don’t want to discuss it because it’s in court so I have to be careful. But there will be a positive political solution. We are working towards an out-of-court solution.

In his previous comments on the matter, however, the governor did not rule out the option of dialogue, but he hinted that all concerned would have to first agree that states should be the right authority to collect VAT. The state Commissioner for Information and Strategy, Mr Gbenga Omotosho, told one of our correspondents on Friday, “As far as I know, we haven’t got any representation from the Federal Government. But for us in Lagos, it is not a matter of us vs them. It is a matter of justice, fairness and equity. It is a matter of what is good for Nigeria.

 

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The states stand a better chance of winning in court, the states shouldn't give in.

No one should buy that This government is incapable of gentlemen agreements, fairness, respect of contract... We must see this to the Supreme Court... The law is clear about VAT.. A lousy parasitic, unjust governance model is why we are here

medicine__god A judicial interpretation will be best for the federation.

We no go gree

They need money asap. Court can take ages to get results and when it comes it might be negative with baggages of bills from Lawyers , SANs and consultants

Nigerian Court is no longer independent hence, expecting their judgement to be hitch free on this ground can only lead to stalling of verdict.

Lagos ll betray the south big time on this Vat issue ,mark this tweet

VAT belongs to the states, let those born to rule almajiris with empty brains from the North generate their VAT from their states, enough of this bullshit. They should generate money from their states and use it to fund their terrorism!

Has Wike started collecting the VAT

Southern delegates make Una no gree oh. The North has taken us southerners for fools & for a ride for far too long. Imagine bauchi state been added to the list of oil producing state while Zamfara gold is only harnessed by Zamfara. This VAT showdown is a fight we must not lose

Has it dawn on quota system SAN and AGF Malami and the FG that they're going to lose the case at the Supreme Court, in line with the unambiguous provision of VAT collection in the Constitution? I strongly believe the apex Court should be allowed to decide the matter unreservedly.

The position of the parties are clear cut. It's an all or nothing issue and I doubt if there's any middle ground that will satisfy the yearnings of the 36 states and fulfill the requirements of the constitution. The resolution would be to allow the Supreme Court adjudicate.

With this news, better days ahead

They know they will lose in court.

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