The Court of Appeal in Abuja has granted the application filed by Lagos State to be made a necessary party in the appeal filed by the Federal Inland Revenue Service, FIRS.
The court held that Lagos State established that it has substantial and sufficient legal right and interest to protect in the revenue collection dispute.
In a unanimous ruling, the court ordered that all processes filed in respect of the suit be served on Lagos State as a third respondent to enable the state respond as required by law to the appeal filed by FIRS.
Justice Haruna Tsamani who delivered the lead ruling fixed October 7 for continuation of hearing in the matter.
The appeal by the firs is against August 9, 2021 judgment by justice Steven Pam of the Federal High Court in Port-Harcourt, voiding the Value Added Tax, VAT, act and holding the states could collect vat.
The Lagos State attorney general, Moyosore Onigbanjo had on the last adjourned date moved an application for joinder, stating thats his client is a necessary party, and that Lagos State, was entitled to collect Value Added Tax, VAT, and the VAT act, which was earlier approved.
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Counsel for Rivers state, Ifedayo Adedipe who agreed with Onigbajo, urged the court to join Lagos, while counsel for FIRS and the attorney general of the federation, Mahmud Magaji and Tijani Gazali argued otherwise and prayed the court not to join Lagos.
FIRS had through a motion on notice applied for a stay of execution on the earlier judgement delivered by justice Stephen Pam of the Port Harcourt high court which affirmed the constitutional role of the state governments to collect VAT and not FIRS.
