Justice Stephen Pam of the Federal High Court sitting in Port Harcourt, Rivers State has dismissed an application by the Federal Inland Revenue Service seeking to stop the Rivers State Government from collecting Value Added Tax in line with an earlier judgement in favour of the state.
Pam, in the judgment on Monday, held that granting the application would negate the principle of equity.
The FIRS in suit no FHC/PHC/149/2021 had approached the court seeking a stay-of-execution on an earlier judgement of the court that stopped the agency from collecting VAT, and held that it was constitutionally the role of state governments.
The FIRS had following the judgement against it requested the high court to stop the Rivers State government from executing the ruling.
Pam stated that inasmuch as the state government and the state legislature had enacted a law with respect to VAT, the courts were bound to obey such law.
He said the state government and the House of Assembly had duly enacted the Rivers State Value Added Tax No. 4, 2021, which makes it a legitimate right of the state to collect VAT.
The judge maintained that the law remained valid until it had been set aside by a court of competent jurisdiction.
Pam further said granting the prayers of the FIRS would amount to committing murder. He noted that the prayers could not stand and, hence, dismissed them.
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