Some Senior Lawyers in the country have taken a swipe at the Attorney-General of the Federation, AGF, and Minister of Justice, Abubakar Malami, SAN, over his recent statement that no State in Nigeria has the power to lay claim to the collection of Value Added Tax, VAT,
AGF Malami in an interview with Channels Television, had said that the collection of VAT in the country is on the Exclusive Legislative List, as contained in the 1999 Constitution, as amended, adding that, only the National Assembly has the power to make Laws on VAT.
He stated: “As you rightly know, the issue of the Value Added Tax is an issue on the Exclusive Legislative List. And the implication of being an Exclusive Legislative List matter, is that only the National Assembly can legislate on it. The question that you may perhaps wish to address your mind on, is whether there exists any national Legislation that has conferred the power on the State to collect VAT. And my answer is ‘no’.
Reacting, Human Rights Lawyer and Senior Advocate of Nigeria, Chief Mike Ozekhome, said that contrary to AGF Malami’s claim, VAT is on the Residual List, and is strictly within the purview of State Governments.
His words: “He (Malami) is dead wrong. There is nowhere VAT is reflected as a matter within the Exclusive or Concurrent List in the Constitution of Nigeria.
“If anything, it is Residual, and is strictly within the purview of State Government in our Federal set-up.
“As of today, there is a judicial pronouncement on it by the Federal High Court, Port Harcourt, to the effect that only States can collect and administer VAT.
“That remains the legal position today. Until that judgement is probably set aside, that remains the Law of the land. The mere statement the Attorney-General cannot alter this truism.”
Also reacting, another Senior Lawyer (name withheld), warned that VAT is a serious constitutional issue, and should not be politicised.
He said: “Is this in the 1999 Constitution or a new one? Which number or section? Let him state it. It is not enough to say it.
“I am not aware that VAT is on any Exclusive List of the Constitution of the Federal Republic of Nigeria.
“Second, he is a Defendant in the case, he should come to the court to come and put this across. It is not something he should give a Press statement or side comments about. It is a very serious constitutional issue, and therefore, should not be politicised. Since we are before the Appellate Court, let us leave it there.”
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