By Adedapo Adesanya
The Court of Appeal in Abuja has granted a request by the Lagos State Government to join Rivers State in the appeal filed by the Federal Inland Revenue Service (FIRS) against a Rivers State High Court, which said states were the right tier of government to collect Value Added Tax (VAT) in the country.
The FIRS had filed an appeal at the appellate court to challenge the ruling by the lower court and Lagos filed a suit to be joined in the matter.
At the resumed hearing of the matter on Thursday, the court granted the request by Lagos and ordered all processes filed to be served on the Attorney-General of the state, Mr Moyosore Onigbanjo.
The case was later adjourned to October 7 and would be heard at the Appellate Court in Port Harcourt.
On September 16, the court reserved its ruling on the application after Mr Onigbanjo, a Senior Advocate of Nigeria (SAN), took his application for joinder in the suit.
He had informed the panel of judges led by Justice Haruna Tsammani that Lagos was entitled to collect VAT, saying the VAT Act was approved by an order of a court, although it had been annulled.
According to the attorney-general, states are recognised by the Constitution to collect VAT and the FIRS is aware of that fact.
He added that the principles for joinder of a party, seeking to be joined, must be a necessary party that has shown that its interest, legally and financially, would be affected.
While Mr Onigbanjo explained that the case of joinder sought was to prevent multiplicity of action, counsel to the Rivers State government, Mr Ifedayo Adedipe, supported the application by the Lagos State government.
However, the counsel to the FIRS, Mr Mahmoud Magaji, opposed the application for joinder while relying on Section 243 of the Constitution.
He stated that the Constitution does not support applications for joinder and Lagos State was not a party to the suit at the trial court.
Modupe Gbadeyanka