Court Voids Obio/Akpor LG Taxes

A Port Harcourt High Court has declared illegal all forms of taxes imposed by the Obio/Akpor Local Government Council in Rivers State.

The taxes declared illegal in a judgement delivered last Monday by Justice Boma Diepiri include tenement rates, local government development levies, sewage levy, operational permit and licences.

The declaration made in Suit PHC/1206/2007 between Schlumberger Nigeria Limited and Obio/Akpor Local Government Council, also gave a perpetual injunction on the council or its agents from harassing, intimidating the oil servicing firm and its personnel.

According to Justice Diepiri, the taxes, levies, Bye Law of 2004 which gave the council the power to impose charges, levies and fees enumerated, were inconsistent with the taxes and levies as approved by an Act of 2004.

In his words, “any provision of a Local Government Council providing for taxes and levies outside those provided under Part III of the Schedule to the taxes and levies (Approved list for Collection) Act 2004 is ultra vires, irregular, unconstitutional, null and void and of no effect.”

However, the court noted that the oil servicing firms are only obligated to pay the local council on three items, namely the tenement rate per annum, sewage rate per annum and signboard per annum, totalling N7,000.

Justice Diepiri observed that the earlier amount as sought by the council is unreasonable and cannot be justified in the circumstance.

The court equally nullified demand by the local council on the oil servicing firm to pay about N5.4 million for operational permit, development, tenement rate, sign posts and sewage levy between 2005 and 2006.

Schlumberger Nigeria Limited had in the suit sought the court to determine whether the imposition and demand as taxation, levies or dues by the local government council to the tune of N4 million was not illegal, unconstitutional, null and void.