A federal high court sitting in Port Harcourt has ruled that Federal Inland Revenue Service and federal government lack the constitutional powers to collect value added tax (VAT) in rivers state
Justice Stephen Dalyop also ruled that FIRS is not backed by the constitution to collect VAT and personal income tax in any of the 36 states
The judge made the pronouncement in a suit filed by the rivers state government against FIRS and the attorney general of the federation on their powers to collect VAT and income taxes in the state
Justice Dalyop rules that FIRS is only empowered by the constitution to collect income tax, and taxes on profit and capital gains specifically mentioned in items 58 and 59 of the exclusive legislative list of the constitution.
He further explains that it is the state governments and not FIRS that are empowered by the constitution to impose consumption and sale taxes, as well as education tax Counsel to FIRS, O.C. EYIBO said he would study the judgment and advise his client
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