By Jeph Ajobaju, Chief Copy Editor
Abuja is mulling taking a lawsuit against Rivers and Lagos at the Supreme Court on the spat over Value Added Tax (VAT), an item not on the Exclusive or Concurrent Lists of the Constitution which means is on the Residual List for states to handle.
The case Rivers won at the Federal High Court in Port Harcourt on August 9 is already at the Court of Appeal at the instance of the Federal Inland Revenue Service (FIRS), and Rivers has also taken the case to the Supreme Court.
Yet federal Attorney General and Justice Minister Abubakar Malami announced in New York, United States that the federal government is considering going to the Supreme Court on its own.
He spoke to journalists on the sidelines of the United Nations General Assembly, according to Channels Television monitored by Nairametrics.
His words: “The federal government had indeed taken cognisance of the fact that where there exists a dispute between a state and the federal government, it is the Supreme Court that should naturally have the jurisdiction to determine the dispute between the state and the federation.
“And we are taking steps to consider the possibility of instituting an action before the Supreme Court for the purpose of having this matter determined once and for all.
Malami said the FIRS would continue to collect VAT following the directive of the Court of Appeal for the status quo to be maintained pending the determination of the substantive suit.
Background story
Justice Stephen Pam of the Federal High Court in Port Harcourt on August 9 granted Rivers the right to collect VAT, instead of the FIRS, paving the way for all states to do so.
Governors Nyesom Wike (Rivers) and Babajide Sanwo-Olu (Lagos) have since signed into law bills passed by their state Houses of Assembly authorising local collection of VAT, widely seen as a win for genuine fiscal federalism.
The Court of Appeal in Abuja later granted the request of the FIRS for a stay of execution of the judgment, pending the determination of the case.
A panel of three Justices led by Haruna Tsammani ordered all parties to maintain the status quo and refrain from taking action that would give effect to the ruling of the lower court.
But Rivers has appealed to the Supreme Court to set aside the ruling, dismiss the oral application for interim injunction made by the FIRS, and reconstitute the panel sitting on the case.
