Lagos State Government Vows to Start Collecting VAT, Despite Court Order.

The Lagos State Government has pledged to proceed with the implementation of the newly signed Value Added Tax, VAT Law in the state, claiming that the Court of Appeal judgment is “not binding on it.”

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The Court of Appeal had ordered states to retain the status quo on VAT collection awaiting the outcome of an appeal filed by the Federal Inland Revenue Service, FIRS.Mr Gbenga Omotoso, Commissioner for Information and Strategy, made the remark in response to the order.

Omotoso maintained that the order is not binding on Lagos State as it has not been joined in the suit yet by the court.

According to the Commissioner: “I’m not a lawyer though, but by my understanding from my colleague, the state had only sought to be joined in the Rivers’ state suit and up to this moment Lagos has not been joined in the suit, so how does the order concern Lagos when it has not been joined in the suit.

“We have not been joined in the matter, so the order is not binding on Lagos, it doesn’t concern Lagos.“Lagos State only filed to be joined as an interested party in the matter”.

Remember that Lagos State Governor Babajide Sanwo-Olu signed the State VAT Bill into law on Friday.

On Friday, immediately after returning from an important trip to Abuja, the Governor signed the “bill for a law to impose and charge VAT on specific products and services.”