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FIRS Has Burden Of Refund Of VAT To Rivers, Court Affirms
A Federal High Court sitting in Port Harcourt, has stated that since the Federal Inland Revenue Service (FIRS) was ab-initio acting in error by collecting Value Added Tax (VAT) in Rivers State, and has huge burden of refund of those monies, there was need not to allow it incur further liability.
The court has also dismissed an application by FIRS, seeking to stop the Rivers State Government from collecting VAT in the state.
The FIRS, in suit no FHC/PH/CS/149/2020, had through a motion on notice, applied for a stay of execution on the earlier judgement of the court presided over by Justice Stephen Dalyop Pam, which declared that it was the constitutional role of state governments to collect VAT, and not FIRS.
Justice Pam, in his ruling on FIRS application for a stay of execution, last Monday, said the granting the application would negate the principle of equity.
He noted that the Rivers State Government, through the state House of Assembly, has duly enacted Rivers State Value Added Tax No. 4, 2021, which makes it legitimate right of the state to collect VAT.
According to the judge, every court in the country was constitutionally mandated to obey every legislation enacted by both the National and State Assemblies, respectively.
He explained that the Rivers State Government law on VAT remains valid until it has been set aside by a court of competent jurisdiction.
The judge declared that the FIRS application was refused and dismissed in the light of the fact that all subsisting laws concerning the collection of VAT stand in favour of the Rivers State Government.
Earlier, Justice Pam, who presided over the court, read a letter that FIRS lawyers had served the court seeking for stay of any ruling on their application.
But, in the absence of any requisite document that ought to have been attached to the letter, the judge dismissed the letter.
Speaking on the implication of the ruling, the counsel for Rivers State Government, Mark Agwu, said the Rivers State Government was still entitled to collect VAT within the state.
He said, “Today, the court has delivered its ruling dismissing the said application for stay of execution, though without cost. In fact, the court’s reason is that if it should grant stay, it is more or less like over- ruling itself.
“And then, since the court is empowered to recognize all laws enacted by the National Assembly or the state Houses of Assembly, therefore, that law (Rivers) stands, it is a substantive law.
“Therefore, the issue of collection of VAT as it stands today, Rivers State Government is still entitled to so collect. That is where we are today”, he argued.
In his reaction, Rivers State Commissioner for Finance, Budget and Economic Planning, Hon Isaac Kamalu said the decision by the Lordship has confirmed the position, both constitutionally and legally, that Rivers State Government has the authority to collect VAT.
“Well, first, we need to thank God. Second, we need to thank the judge for the courage. If you recall, the court had already declared that it is the Rivers State Government that has the constitutional responsibility for the collection of VAT.
“Following that decision of the High Court, which is binding on all parties and institutions, the Rivers State Government and the state Legislature has the Value Added Tax Law of Rivers State No. 4 of 2021 in force too.”
“I think the decision by the Lordship this morning is to confirm the position, both constitutionally and legally that the state has the authority to collect VAT.”
In his reaction, lead counsel to the Federal Inland Revenue Services (FIRS), Reuben Wanogho, said the court has delivered its ruling on the basis of how it saw the facts of the case before it.
According to him, they do not agree with the ruling, and already resolved to take all necessary steps to challenge it.
In a statement posted yesterday, NDLEA’s Director of Media and Advocacy, Femi Babafemi, said recent seizures by the agency’s officers had revealed attempts by criminal elements to introduce prohibited substances under the guise of everyday snacks.
“As parents, if your kids and young ones always crave for cookies and gummies, you may have to pay a little more attention. There may be more to it than ordinary cookies and gummies,” Babafemi wrote, sharing images of seized packages.
The photos showed colourful pouches of “Cookies Delta 8 Gummies” in flavours such as Hawaiian Rain Pineapple Guava and Thai Mango, labelled as vegan and hemp-derived, alongside the actual gummy products.
The warning comes amid a major interception by the Nigeria Customs Service at the Tin Can Island Port in Lagos.
Officers seized two 40-foot containers containing large quantities of cannabis-infused products concealed among legitimate imports such as used vehicles, generators, batteries and fabrics.
The consignment included thousands of Delta-8 cannabis pre-roll cookies, packs of cannabis-infused gummies and other cannabis-infused cookies, with a combined estimated street value of about ?373.8m.
The items were subsequently handed over to the NDLEA.
NDLEA officials described the products, which originated from the United States and were packaged to resemble ordinary vegan snacks with appealing flavours, as an emerging public health threat.
They noted that the attractive packaging could appeal especially to children, students and young people, raising the risk of accidental consumption of concentrated cannabis.
The partnership was unveiled during a meeting between officials of RIWAMA and the leadership of the Rivers State chapter of the PCRC in Port Harcourt, recently, where both organisations pledged to work together to restore the Garden City status of the state capital.
In his speech, the Supervisor of Market and Community Sanitation in RIWAMA, Mr. Omereji Ukoha, said the collaboration was in line with the vision of the agency’s Managing Director, Dr. Ibimina Wokoma, and the Board Chairman, Dr. Samuel Nwanosike, to promote a cleaner and healthier environment.
Ukoha described the PCRC as a strategic grassroots partner capable of mobilising communities and driving behavioural change through sustained public enlightenment on proper waste disposal.
He expressed concern over the increasing rate of indiscriminate refuse dumping in parts of Port Harcourt, particularly in New GRA, where blocked drainage channels and illegal shanties have continued to contribute to flooding and environmental degradation.
According to him, the agency is determined to intensify enforcement against environmental offenders, warning that unregistered cart pushers and residents who patronise them would be prosecuted in accordance with the provisions of the RIWAMA Act, 2014.
The RIWAMA official urged residents to embrace proper waste disposal practices and patronise only government-approved waste operators in order to safeguard public health and protect the environment.
Responding, the Chairman of the Police Community Relations Committee in Rivers State, Dr. Voke Emore, commended RIWAMA for seeking collaboration with the committee in addressing environmental challenges confronting the state.
Emore said the PCRC would deploy its community-based structures across the state to support public sensitisation and encourage residents to comply with environmental sanitation regulations.
He also called on local government councils to play more active roles in waste management, noting that they collect sanitation levies and should complement the efforts of the state government in maintaining a clean environment.
The PCRC chairman described indiscriminate refuse disposal as a serious environmental and public health concern, stressing that sustained collaboration among government agencies, community leaders and residents remained critical to achieving lasting sanitation goals.
Both organisations expressed optimism that the partnership would promote cleaner communities, reduce environmental hazards and strengthen public participation in efforts to ensure a healthier and more sustainable environment for the people of Rivers State.
King Onunwor
The State Police Command disclosed this in a statement by its Public Relations Officer, ASP Blessing Agabe, in Port Harcourt, recently.
The suspects were arrested during a coordinated operation at Oyigbo, following directives by the Commissioner of Police, Rivers State Command, CP Olugbenga Adewole Adepoju.
Those arrested were Ezekiel Emmanuel, 44, from Benue State; Chukwuma Mbanefor, 51, from Anambra State; Nicholas Diala, 65, from Imo State; Ndubuisi Uwakwe, 49, from Abia State; and Ifeanyi Nwakwo, 51, from Imo State.
The Command said the arrest represented another significant operational success in its ongoing efforts to dismantle criminal networks operating in the State.
According to the Police, preliminary investigation indicated that the suspects were allegedly involved in kidnapping operations within Rivers State.
The suspects, during interrogation, allegedly confessed to their involvement in kidnapping and further admitted participating in several operations carried out in Kom-Kom, Railway, Obeama and Afam communities.
The Command said investigation was ongoing, with efforts intensified to identify and apprehend other members of the suspected syndicate who may be connected with the criminal activities.
The Police boss said the operation reflected the implementation of operational directives and the intelligence-driven policing strategy of the Inspector-General of Police, IGP Olatunji Rilwan Disu, psc, NPM.
Adepoju reaffirmed the Command’s determination to sustain aggressive intelligence-led operations against kidnapping, cultism, armed robbery and other violent crimes across Rivers State.
He warned kidnappers and other criminal elements operating in the State that there would be no safe haven for them, stressing that the Command would relentlessly pursue, arrest and ensure that those found culpable were brought to justice.
The Commissioner further assured residents of the Command’s commitment to protecting lives and property, urging members of the public to remain vigilant and cooperate with security agencies in the fight against crime.
He appealed to residents to provide the Police with credible and timely information capable of assisting security operatives in preventing criminal activities and apprehending suspected criminals.
The Command urged members of the public who may have useful information on the activities of the suspected kidnapping syndicate or other criminal elements to contact the Police through its emergency lines, assuring that such information would assist ongoing investigations.
King Onunwor
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