Connect with us


VAT: Nigerian govt considering out-of-court settlement with states – Finance minister



The Minister of Finance, Budget, and National Planning, Zainab Ahmed, said on Friday the Federal Government is considering an out-of-court settlement with states the ongoing dispute over the Value Added Tax (VAT).

The Rivers State government in August dragged the Federal Inland Revenue Service (FIRS) to court over VAT collection.

Lagos State later joined Rivers State in the suit challenging the federal government’s jurisdiction on VAT collection.

Justice Stephen Pam of the Federal High Court, Port Harcourt, in a ruling delivered on August 9 restrained the FIRS from collecting VAT and Personal Income Tax (PIT) in Rivers State.

FIRS later appealed the ruling at the Appeal Court.

READ ALSO: VAT war between FG, states delaying 2022 Budget preparations – Bauchi govt

Following the appellate court’s refusal to grant the Rivers State’s government request to stop FIRS from collecting VAT, the two states approached the Supreme Court for resolution of the dispute.

Ahmed, who disclosed this when she appeared on Channels Television, said the federal government was seeking a political solution to the dispute.

She said: “Yes, there will be a positive political solution to the VAT dispute. We are working towards an out-of-court solution.

“I have to do this carefully because they are issues in court, and I am not supposed to be talking about issues in court.

“But, I do hope that this matter can be solved by sitting on the table, not on the pages of newspapers, not disagreements in court because it is possible to solve it on the table.”

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now