- The Federal High Court in Abuja struck down Delta State provisions that imposed a 5% consumption tax on hotel, restaurant, supermarket and departmental store transactions already covered by federal VAT.
- Sections 3 and 4 of the Delta State Hotel Occupancy, Restaurants and Departmental Stores Consumption Tax Law, 2017 were declared invalid, along with Section 7(b), Item 13 of the 2015 Taxes and Levies (Approved List for Collection) Order.
- The court granted a perpetual injunction barring Delta State tax authorities and officials from enforcing the challenged provisions.
- The case was brought by NECA and Retail Supermarkets Nigeria Ltd, which argued the state levy created an unlawful overlap and extra tax burden on VAT-liable transactions.
Source: guardian.ng
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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