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Exclusive: VAT Controversy: FG Plots To Move Case File To Abuja

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Following the landmark decision by Justice Stephen Pam of the Federal High Court sitting in Port Harcourt to throw out the stay of execution suit brought before the honourable court by the Federal Internal Revenue Service(FIRS), The Boss can exclusively reveal that plans are being made to move the case file from Port Harcourt to Abuja, the nation’s capital.

We are told that there is panic in the seat of power following the order of court that granting the request of the FIRS was akin to committing murder and the fact that Lagos State which is the largest contributor to the Value Added Tax (VAT) pool is already on the verge of passing a new law like Rivers State to start VAT Collection.

The Boss learnt from very reliable sources that though the FIRS has kept insisting on its legal right to collect the said tax and actually held a press conference today after losing the suit against the Rivers State Government, panic-stricken top functionaries of  the federal government are designing plans to frustrate the implementation of the judgment because it will not only lead to serious revenue shortfall but throw FG’s financial projections overboard.

It will be recalled that on August 9, 2021 the Federal High Court sitting in Port Harcourt had declared that it is the Rivers State Government and not the Federal Inland Revenue Services (FIRS), that should collect Valued Added Tax (VAT) and Personal Income Tax (PIT) in the State.
The court, presided over by Justice Stephen Dalyop Pam, had also issued an order of perpetual injunction restraining the Federal Inland Revenue Service and the Attorney General of the federation, both first and second defendants in the suit, from collecting, demanding, threatening and intimidating residents of Rivers State to pay to FIRS, personnel income tax and Value Added Tax.
Justice Pam made the assertion while delivering judgement in Suit No. FHC/PH/CS/149/2020, filed by the Attorney General for Rivers State (plaintiff), against the Federal Inland Revenue Service (first defendant) and the Attorney General of the Federation (second defendant).
The Court, which granted all the eleven reliefs sought by the Rivers State Government, stated that there is no constitutional basis for the FIRS to demand for and collect VAT, Withholding Tax, Education Tax and Technology levy in Rivers State or any other State of the Federation, being that the constitutional powers and competence of the Federal Government is limited to taxation of incomes, profits and capital gains which does not include VAT  or any other species of sales, or levy other than those specifically mentioned in items 58 and 59 of the Exclusive Legislative List of the Constitution.
The judge dismissed the preliminary objections filed by the defendants that the Court lacks jurisdiction to hear the suit and that the case should be transferred to Court of Appeal for interpretation.
Justice Pam, who also dismissed objection raised by the defendants that the National Assembly ought to have been made a party in the suit, declared that the issues of taxes raised by the State government are issues of law that the court is constitutionally empowered to entertain.
He declared that after a diligent review of the issues raised by both the plaintiff and the defendants, the plaintiff has proven beyond doubt that it is entitled to all the eleven reliefs it sought in the suit.
The court agreed with the Rivers State Government that it is the State and not FIRS that is constitutionally entitled to impose taxes enforceable or collectable in its territory of the nature of consumption or sales tax, VAT, education and other taxes or levies, other than the taxes and duties specifically reserved for the Federal Government by items 58 and 59 of Part 1 of the Second Schedule of the 1999 constitution as amended.
Also, the court declared that the defendants are not constitutionally entitled to charge or impose levies, charges or rates (under any guise or by whatever name called) on the residents of Rivers State and indeed any state of the federation.
Lead counsel for the Rivers State Government, Donald Chika Denwigwe (SAN), who spoke to journalists after the court session, explained that the case is all about the interpretation of the constitution as regards the authority of the government at the State and Federal levels to collect certain revenue particularly, VAT.
“So, during the determination of the matter, some issues of law were thrown up like, whether or not the case should be referred to the Court of Appeal for the determination of some issues.
“The court noted that the application is like asking the Federal High Court to transfer the entire case to the Court of Appeal. In which case, if the court so decides there will be nothing left to refer back to the Federal High Court as required by the constitution.”
Speaking on the implication of the judgement, Denwigwe said it is now, unlawful for such taxes as VAT in Rivers State to be collected by any agency of the Federal Government.
FIRS has revealed to journalists today that it has begun the process of appealing the judgment, but from all indications, the agency which is now beginning to fight like a wounded lion is bent on taking unusual steps to continue with what the high court has termed an illegality.

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You’ve Nothing to Offer Nigerians, Only Insults, Akwa Ibom Gov Slams Tinubu

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Governor of Akwa Ibom State, Udom Emmanuel, on Monday, replied the presidential candidate of the All Progressives Congress, Bola Tinubu, saying that he (Tinubu) always resorts to abusing and insulting people during campaigns because he has nothing to bring to the table for Nigerians.

He also said that despite being insulted by the former Lagos State Governor, he would prefer to allow peace to reign by ignoring him and focusing on helping install good governance to rescue Nigerians from their present woes.

Emmanuel spoke on Monday evening at Government House, Uyo while inaugurating newly appointed Permanent Secretaries, Chairmen and Members of Boards and Commissions, as well as a Transition Committee to ensure the smooth transition of power to the next administration.

Recall that Tinubu had during his rally in Uyo Monday afternoon, reportedly said, “Akwa Ibom, that boy wey bring Atiku here, wey de call himself Governor, tell him enough is enough! He lives in my backyard in Lagos, If no be say we be one, I would have driven him home. You see that mansion he is living, I would just use lizards, pigeons and scorpions to put him inside.“

But reacting few hours later, the Akwa Ibom State Governor said, “for the country to remain in peace, one party must ‘play saint’ and that is why he would refrain from replying Tinubu.

Emmanuel who is the Chairman of the PDP presidential campaigns said, “I also go to other states, and if you watch our campaigns, my principal (Atiku Abubakar) has never spoken about any Governor, he has never spoken openly about Asiwaju before.”

He added that it was unfortunate that Tinubu, who was granted state-owned facilities such as the airport, security, stadium, and a good atmosphere to come in and sell his manifesto, ended up coming to insult the integrity of over 7.9 million Akwa Ibom people.

The Governor wondered if it is possible for any Akwa Ibomite to go to Lagos that Tinubu stays or the actual state that he hails from, to insult Tinubu in like manner and still be allowed to safely return home, “but here our people at the stadium including some state governors just laughed and applauded him.”

“What makes him think he will govern Nigeria? If I reply him now, people will call me and say, haba oga you are not like that. But I will reply him one day. There is nothing like ‘emilokan’ (it is my turn) here, Nigeria is in God’s hands.”

He maintained further that despite being the highest revenue contributor to the federation account, Akwa Ibom State has not gotten a single kilometre of road from the APC-led Federal Government for nearly 8 years adding that the poor response from the Federal Government also caused the delayed commencement of the seaport in the state.

Meanwhile, the governor thanked the newly appointed Permanent Secretaries for accepting the onerous task of service, and urged them to see themselves as ambassadors and work towards raising the bar of leadership which would encourage productivity and promote good working relationship with subordinates in the service.

“This is one thing I promised Akwa Ibom people that appointment of Permanent Secretaries shall be totally on merit and not by mercy, let those that can do the work be given the opportunity. Permanent Secretary is not a promotion, it is an appointment on merit.

Governor Emmanuel also reiterated his commitments towards enhancing efficiency within Civil Service, noting that during his administration civil servants have been promoted on yearly basis.

He assured that before he exits office more Permanent Secretaries would be appointed into the service to fill vacant positions left by the ones who retired.

Addressing Chairmen of Boards and Commissions, Governor Emmanuel who described them as pillars in government, acknowledged their commitment particularly, Chairman, Akwa Ibom State Environmental Protection & Waste Management Agency, Prince Akpan Ikim, for winning laurels for the state through his outstanding performance in keeping and making the state the cleanest in Nigeria for five consecutive years from 2018 through 2022, and tasked others to create an impact that will stand them out.

In the same vein, the Transition Committee members were handed the task of ensuring a seamless transition of government to an incoming administration, and also verify all projects executed by the present administration.

The newly appointed Permanent Secretaries are; Mfon Inuaesiet Edemekong Esq., Dr. Stephen Effiong, Atim Chelly Okoko, Iquo Okon Abia Esq., Uwem Sunday Andrew-Essien, Isaiah Robson Ntekim and Emaeyak Nyong Akpan as Auditor-General for Local Government.

The Transition Committee has Mrs. Ekereobong Umoh -Chairman, Uko Udom SAN, Prof Augustine Umoh, Dr. Ini Adiakpan, Mrs. Nsemeke Daniel, Dr. Nathaniel Adiakpan, Mr Elijah Udoiyak, Mrs. Esther Inyang, Pastor Uwem Andrew-Essien, Mr. Isaiah Ntekim, Mr. Effiong Ekpenyong and Mrs. Bella Akpanya as members.

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PDP Condemns Attack on Buhari in Kano, Blames Tinubu, Ganduje

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The Peoples Democratic Party Presidential Campaign Council, has blamed the presidential candidate of the All Progressives Congress (APC), Asiwaju Bola Tinubu, and the governor of Kano State, Abdullahi Ganduje, for the attacks on the convoy of President Muhammadu Buhari, during a visit to the state on Monday.

The spokesperson of the campaign council, Dino Melaye, who shared one of the videos from the reported attack, wrote, “The fight between Tinubu and Buhari is entering a new dimension. The attack in Kano was properly coordinated and funded allegedly by Asiwaju.

“The meeting to push Buhari to submission or face sponsored attack in the north was said to be hatched in Bourdillon. Me, I am busy with Atiku.”

A political activist, Deji Adeyanju, who shared another video of the reported attack, said, “They are showing Buhari and APC Shege in Kano and many northern states.”

Similarly, the PDP in a statement signed by its National Publicity Secretary, Debo Ologunagba, on Monday also blamed Tinubu and the Governor of Kano State, Abdullahi Ganduje, for the attack.

According to the party, the attack was designed to undermine the Presidency, cause confusion, trigger violence in the country, disrupt the conduct of the 2023 general elections “and derail our democracy having realised that he cannot win in a peaceful, free and fair electoral process.”

The statement read in part, “The PDP invites Nigerians to note how Governor Abdullahi Ganduje attempted to abridge President Buhari’s movement and even tried to stop him from visiting Kano State.

“More disquieting is the fact that the APC Presidential Campaign sought to humiliate and harm President Buhari while performing his official duties in Kano.

“It should be noted that the APC presidential candidate has been displaying open aversion and making inciting statements against President Buhari since Mr President’s declaration, in line with democratic best practice all over the world that Nigerians should freely vote for any candidate and party of their choice in the 2023 general elections.

“The apparent frustration of Asiwaju Tinubu to resort to encourage or condone violence is fueled by his entitlement mentality, that it is his turn to be President, despite his numerous ineligibility and disability baggage.”

Ologunagba reminded Nigerians about Tinubu’s infamous statement in London where he declared to his supporters that “political power is not going to be served in a restaurant, it is not served a la carte.”

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Organ Harvesting: Ekweremadu Battles for Freedom, Appears in Court Tuesday

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A former Deputy President of the Senate, Ike Ekweremadu, will on Tuesday appear again in court in the United Kingdom where he has been accused of human trafficking.

The lawmaker was in June 2022 arrested at Heathrow Airport in London after Staines Police Station received a report from a young man claiming to have been trafficked into the UK.

The young man, who made the report shortly after arriving in the UK from Nigeria, also alleged that he was made to undergo some medical tests, none of which he consented to.

Ekweremadu was immediately arraigned before a Magistrate’s Court for bringing a child into the UK to harvest his organs.

While the lawmaker had been in custody since June 23, his wife, Beatrice, who was arrested with him, was granted bail by a criminal court in London shortly after their arrest.

Monday (today) makes it 221 days since Ekweremadu was placed in the custody of UK authorities.

The case against the lawmaker which had been slated for May was later scheduled for January 31.

The 60-year-old, who denied the allegations against him, will again appear before High Court Judge, Mr Justice Johnson.

His daughter, Sonia, had on November 7, 2022, appeared in court to defend the accusation of trafficking a homeless man into the UK to harvest his organs for herself.

According to Daily Mail, the 25-year-old, who is battling a kidney-related illness, pleaded not guilty to the charge level against her when she appeared again in court on January 13.

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