EXAMINING THE CONFLICT BETWEEN THE FEDERAL AND STATE GOVERNMENTS OF NIGERIA IN THE ADMINISTERATION OF THE VALUE ADDED TAX ACT

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Emmanuel Utebor
Bolarinwa Lebile

Abstract

In the Attorney-General of Rivers State against the Federal Inland Revenue Service and the Attorney-General of the Federation, on who can impose, administer, and collect Value-added tax in Rivers State, the Federal High Court of Nigeria, sitting in Port-Harcourt, in its judgment delivered on 20th August, 2021 held that the Rivers State has the legitimate power to collect Value-added tax within the State. This was accepted with mixed feelings by the populace as some people commended the Court for championing the lingering debate on fiscal Federalism while others condemned the Court for trying to indirectly amend the provisions of the 1999 Constitution. The decision of the Court is an indication of the constant conflict of taxing powers that exists between the Federal Government of Nigeria and the various State Governments. This decision has also led to the questioning of the validity or legitimacy of the Value-Added Tax Act which confers powers on the Federal government to impose Value-added tax and collect same through its agent(s). This article explores the controversy surrounding the conflict of taxing powers between both tiers of government, its origin, instances of judicial intervention, and the final conclusions that can be drawn from it, as well as made recommendations to curb this lingering crisis, with emphasis on the need for a Constitutional amendment.

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How to Cite
Utebor, E., & Lebile, B. (2019). EXAMINING THE CONFLICT BETWEEN THE FEDERAL AND STATE GOVERNMENTS OF NIGERIA IN THE ADMINISTERATION OF THE VALUE ADDED TAX ACT. ABUAD Private and Business Law Journal, 3(1), 37-54. https://doi.org/10.53982/apblj.2019.0301.03-j
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Articles
Author Biography

Emmanuel Utebor, Department of Private & Business Law, College of Law, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria

Lecturer, Department of Private & Business Law, College of Law, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria