A Federal High Court in Port Harcourt has dismissed an application for stay of execution of its earlier judgement empowering states to collect Value Added Tax (VAT).
The Federal Government through the Federal Inland Revenue Service (FIRS) had appealed the judgment, and further filed a motion for stay of execution of the said judgment pending the determination of the appeal.
In a ruling today, the court dismissed the motion, thus paving the way for execution of the judgment.
Already, the governments of Lagos and Rivers states have expressed their readiness to begin #VAT collection.
This is as some states in the Northern part of the country are making a strong case against the execution of the judgment on the ground that it would greatly shrink their revenue and adversely affect their economy.
Before now, VAT is being collected by FIRS on behalf of states and later shared among the federating units.
