Justice Aikawa gave the order while delivering judgment in a suit seeking to restrain the Attorney General of Lagos State from enforcing the Hotel Occupancy and Restaurant Consumption Regulations Law , 2017, in the view that VAT Act has covered the field.
The court also raised two issues by herself; whether the Federal High Court had the jurisdiction to pronounce on the constitutionality of VAT. The court resolved that it has jurisdiction. “That VAT Act can’t cover the field over what the federal government has no power to legislate upon, under the constitution, therefore the determinant factor in the issue of covering the field, is whether there is power to make the Law.
“FIRS are barred from enforcing VAT provisions as it relates to consumption tax on goods and services consumed in Hotels, Restaurants and Event Centres in Lagos State, ” the judgement read. “Whether the provisions of the Hotel Occupancy and Restaurant Consumption Regulations 2017 are of no effect, in view of the fact that VAT Act has covered the field”.
Source: Holiday News (holidaynews.net)
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