- The Federal High Court in Abuja stopped Delta State from enforcing its 5% consumption tax on transactions already covered by the federal VAT regime.
- The court nullified key parts of the Delta State Hotel Occupancy, Restaurants and Departmental Stores Consumption Tax Law, 2017, and also set aside the related item in the Taxes and Levies (Approved List for Collection) Order.
- A perpetual injunction was issued against Delta State tax authorities from enforcing the affected provisions.
- The court accepted arguments that the state levy created overlapping taxation and inconsistent tax obligations where VAT already applies, relying on the Supreme Court’s Lagos v. Eko Hotels decision and constitutional supremacy of federal law over conflicting state law.
Source: galaxytvonline.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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