Attorney-General of the Federation, Abubakar Malami, says the collection of Value Added Tax (VAT) in the country is under the exclusive legislative list, hence states have no power to lay claim to its collection.
Malami said this on Friday, during a television interview.
There have been legal tussle between
the Federal Inland Revenue Service (FIRS) and some states over VAT collection.
The Court of Appeal has directed all parties to maintain status quo.
“And the implication of being in exclusive legislative list matter is that only the National Assembly can legislate on it,” he said.
“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,” he said.
“In the absence of a law passed by the National Assembly in that direction, no state can have a valid claim to collection of Value Added Tax.
“The responsibility, right and constitutional powers to legislate on collection of VAT is exclusively and constitutionally vested in the National Assembly and not in the state.
“Where the National Assembly has not passed any law in that regard authorising the state to collect VAT, then it goes without saying that no state can arrogate unto itself the powers to collect VAT.
“It will amount to ‘recklessness’ for any state to go ahead to collect VAT, despite the court’s decision asking parties to maintain the status quo.
“I don’t see any state perhaps taking the law unto its hands without allowing the judicial process to take its natural course and in breach of the prevailing legislation.
“I don’t see the states acting arbitrarily and setting a very bad precedence as far as governance is concerned with particular regard to the fact that the matter is receiving judicial determination,” the minister said.
