Rivers State Governor, Nyesom Wike has urged individuals and groups doing business in the state to brace up for payment of tax to boost the revenue of the state saying anyone who failed to cooperate with the state would” be playing with fire and would get his fingers burnt.”
Wike gave the warning during an interactive stakeholders meeting on Monday in Government House , Port Harcourt shortly after a Port Harcourt High Court judgement on September 6,2021 vesting the power of tax collection in the state .
The Court held that the Rivers State VAT Law was validly made and constitutional, therefore, the state should continue with the VAT collection.
Rivers State government had on the 9th of August,2021, filed a suit against the Attorney General of the Federation and , the Federal Inland Revenue Service ( FIRS) over demands,threats and intimidation of the state residents to pay Value Added Tax (VAT) and the Personal Income Tax (PIT) by the agency.
Consequently, the Federal High Court in Port Harcourt issued an order restraining the FIRS from collecting VAT and PIT but directed the Rivers State Government to take charge of the tax matters declaring that the power of the federal government to delegate the collection of taxes can only be exercised by the state government or other authority of the state and no other person according to provisions in part 11 of the concurrent legislative list of the Second Schedule of the 1999 constitution as amended.
The court,presided by Justice Stephen Pam dismissed the preliminary objections filed by the defendants that the court lacks jurisdiction to hear the suit and as such the case should be transferred to the court of Appeal for interpretation..
Wike while applauding the judgement of the court, told the stakeholders that the taxes being collected would be directed towards further development of the state adding that the decision of the lower court stands unless overturned by judgement of a superior court He then directed the Rivers State Revenue Board to ensure full implementation of the court judgement.
” Consequently, I hereby direct the state Revenue Service Board to ensure the full and total implementation and enforcement of this law against all corporate bodies, business entities and individuals with immediate effect.
” All corporate bodies, business entities and individuals are advised to willingly, truthfully and promptly comply with their tax obligations under this law to avoid full weight of the stipulated sanctions including having their business premises sealed up.
” Let me warn that the Rivers State Government is fully in charge of the state and would not tolerate any further attempt by the FIRS to sabotage or undermine our authority to freely administer our tax and other related laws in our own state.” The Rivers Governor said.
