The Federal Inland Revenue Service, FIRS, has appealed the Federal High Court Judgment that declared the body’s collection of value added tax as unconstitutional, exclusively reserving the role for Rivers State.
The statement from the FIRS Director of Communications and Liaison Department, Abdullahi Ismaila Ahmad read, “This is to inform the general public that the Federal Inland Revenue Service has lodged an appeal against the judgment of the Federal High Court, Port Harcourt Judicial Division, delivered by Honourable Justice Stephen Pam, in SUIT NO. FHC/PH/CS/149/2020-ATTORNEY GENERAL OF RIVERS STATE v. FEDERAL INLAND REVENUE SERVICE & ANOTHER.
“We have also sought an injunction pending appeal and a Stay of Execution of the said judgement.
“As the decision is being appealed and in view of the pending applications for injunction and stay of execution, which the FIRS has filed in court against the judgement, members of the public are advised to continue to comply with the Value Added Tax obligations until the matter is resolved by the appellate courts in order to avoid accruing the consequent penalties and interest for non-compliance.
According to investopedia, a value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.