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NECA, Attorney-General back payment of VAT to FIRS

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The federal government has directed private sector operators to remit August Value Added Tax (VAT) to the the Federal Inland Revenue Service (FIRS) in compliance with recent Court of Appeal order.

Also, the Nigeria Employers Consultative Association (NECA) asked its members to make their VAT remittances for August to the FIRS.

The Court of Appeal has last week rule that all parties to the case on who collected VAT between states and federal governmnet should maintain status quo ante bellum.

Attorney-General of the Federation and Minister of Justice, Abubakar Malami clarified that the status quo referred to the state of affairs before parties went to court.

Malami through his spokesman, Umar Gwandu said that FIRS remained the statutory VAT collecting authority, not states.

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“As far as the Federal Government is concerned, the status quo ordered to be maintained by the court is a position prior to the submission to the jurisdiction of the court which in effect means the FIRS remains the recognised revenue collector of the VAT in the country,” Gwandu said.

The tax-collecting agency also urged companies not to panic or be confused and remit “their returns to the FIRS”.

On its part, NECA directed its members to make their VAT remittances for August to FIRS. NECA is a association of employers in the private sector.

In a statement, NECA Director-General, Timothy Olawale, said: “All VAT collected for August 2021 should be remitted to the FIRS based on the Order of the Court of Appeal.”

However, the Lagos Chamber of Commerce and Industry (LCCI) said businesses were still confused as to who was in charge of VAT.

Its Director-General, Chinyere Almona, in a statement, said the situation was not healthy for the business community and planning.

She believes businesses should not be made to pay VAT twice to different agencies.

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