NIMASA's tax dispute with NLNG returns to high court

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Appellate court orders retrial of the case.

The Court of Appeal, Lagos Division, on Friday, set aside the judgement of the Federal High Court over the alleged exemption of the Nigerian Liquefied Natural Gas Limited from tax and other levies payable to the Nigerian Maritime Administration and Safety Agency .

Consequently, NIMASA said the NLNG should pay three per cent of the gross freight on all international outbound and inbound cargos carried by ships it chartered for the transport of natural gas cargoes. In the legal process filed in court, NIMASA sought an interpretation of relevant provisions of the Nigerian LNG Act, CAP N87, Laws of the Federation of Nigeria 1990, and the NIMASA Act of 2007.

But, in May 2013, he said NIMASA in a bid to enforce compliance to its regulations, again arrested and detained NLNG vessels for non-compliance. The notice had resulted in another blockade on June 21, 2013, during which time various issues were canvassed in court by the parties.

 

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