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Validity of the VAT act … ????

Despite its huge contribution to national revenue, the validity of Value Added Tax (VAT) remains a contentious issue especially in the light of  consumption/sales tax imposed by several states in Nigeria. In the recently decided case of Emmanuel Chukwuka Ukala v. FIRS (Ukala’s case), the Federal High Court (FHC) held that the powers of the National Assembly to make laws imposing tax is limited to the profits/income of persons/companies, capital gainsand stamp duties on instruments but does not extend to VAT.

The plaintiff urged the FHC to declare that there is no constitutional basis for the imposition, demand and collection of VAT by the Federal tax authorities.

Source WTS


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