By Gabriel Atumeyi
The Lagos State Governor, Mr. Babajide Sanwo-Olu, has signed into law, the State VAT Bill that was passed by the House of Assembly, on Thursday.
Sanwo-Olu signed the bill for a law to impose and charge VAT on certain goods and services.
The VAT bill had passed its first and second readings at the house on Monday, while the committee on Finance committee held public hearing on the bill while it was passed at parliament on Thursday.
By this act, the bill is considered a Law in Lagos.
Meanwhile, the Court of Appeal in Abuja on Friday stopped the governments of Rivers and Lagos from collecting Value Added Taxes (VAT).
Justice Haruna Simon Tsanami also ruled that the law passed by Rivers State House of Assembly and assented to by Governor Nyesom Ezenwo Wike be put on hold.
The judge gave the order hours before Governor Babajide Sanwo-Olu signed the law on VAT.
Sanwo-Olu signed the law moments after he arrived the state from Abuja.
The appellate court’s decision followed an application by the Federal Inland Revenue Service (FIRS), seeking a stay of execution of the order of a Rivers State high court in the matter.
A Federal High Court in Port Harcourt had in August upheld the powers of the state to collect Value Added Tax (VAT) and Personal Income Tax.
The court also issued an order of perpetual injunction restraining the FIRS and the Attorney General of the Federation, from collecting, demanding, threatening and intimidating residents of Rivers to pay to FIRS, personnel income tax and VAT.
Both Rivers and Lagos state governments have already enacted legislations to give effect to the judgment in respect of VAT.
An earlier application by the FIRS to the high court in Rivers to stay execution of the judgment was on Monday refused by Justice Stephen Dalyop Pam on the grounds that the application would negate the principle of equity as the state legislature had already enacted law on the VAT collection.