Lawyer Sues Federal Govt, Lagos, Northern Governors Over Alcoholic Beverages Tax

Thu May 26th, 2022 - Bauchi

A Lagos lawyer, Chief Malcom Omirhobo has dragged the Federal Government, the Lagos State government and 12 states in the northern region of Nigeria to court over the allocation of Value Added Tax (VAT) realised from the sale of alcoholic beverages.

Omirhobo is asking a Federal High Court in Lagos to declare as illegal and unconstitutional for the Federal Government to allocate VAT revenue realised from the consumption of alcohol in other states to the 12 northern states who prohibit the consumption of alcohol and destroy them in their respective states for religious reasons and/or in the enforcement of the Sharia criminal law.

The 12 states joined as defendants in the suit are Kano, Zamfara, Kaduna, Bauchi, Sokoto, Borno, Gombe, Jigawa, Katsina, Kebbi, Niger and Yobe states.

They were all joined alongside their Attorneys General, the Attorney-General of the Federation and the Minister of Justice of Lagos State.

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The applicant also praying the court to determine whether, by interpretation and/or construction of the provisions of Section 4 (7) and items 58 and 59 of Part I of the Second Schedule of the 1999 Constitution, he is obligated to pay VAT to the third defendant (Lagos State) and not to the first defendant (FG).

He also wants the court to determine whether, by Section 40 of the VAT Act, Cap VI Laws of the Federations 2004, it is equitable, proper, legal, lawful and constitutional for all domestic VAT collected from the 3rd defendant and other states to be paid into the federation account for allocation to all states and their local councils on a sharing formula.

No date has been fixed for the hearing of the suit because it is yet to be assigned to a judge.




source: Leadership