Consumption Tax: Lagos Goes To Appeal Court

The government of Lagos State has appealed against the ruling of the Federal High Court restraining it from enforcing the Hotel Occupancy and Restaurant Consumption Tax Law on fast food confectioners in the state.
The Federal High Court had on October 19, this year, restrained the state government from enforcing the law on the Registered Trustees of the Fast Food Confectioners of Nigeria, which took the government to court.
The state government, through the Attorney-General, had challenged the powers of a Federal High Court in entertaining a matter that is a state law, but the court said it assumed jurisdiction on the matter.
At a press conference in which the Special Adviser to the Governor on Taxation and that of Information and Strategy, Mr Ade Ipaye and Segun Ayobolu represented the government, the state government said it was appealing against the ruling in order to bring about justice.
According to Ipaye, the Lagos State Attorney General, Supo Sasore had appealed this ruling “and is requesting for a stay of execution.”
The Lagos State Attorney-General is also opposed to the Plaintiff’s application for a restraining order on the ground that the court had not yet heard arguments about the validity of the state law and based on established legal principles, would not restrain a state government from implementing a law validly passed by the state House of Assembly.
This decision revives arguments on the practice of federalism as we now have a situation in which a Federal High Court restrains a state government from implementing a state law, which is indeed constitutional duty of the state government, he said.
Ipaye pointed out that the ruling of the Federal High Court restraining the state government from enforcing the law only applies to the three Plaintiff Associations with total membership strength of about 100, while over 1,099 establishments had registered for the law and were complying fully.
He said that the state government would go ahead to implement the law on those who had already complied with the provisions of the law.