NECA secures judgment against Kano govt

The Nigeria Employers’ Consultative Association (NECA), has secured a landmark judgment against the Kano State Revenue Administration (Amendment) Law, 2017.
A Federal High Court, siiting in Kano, in its ruling, invalidated the Consumption Tax provisions of the Kano State Revenue Administration (Amendment) Law, 2017.
The Director General of NECA Mr. Olusegun Oshinowo, while commenting on the judgement said, “the legal action became necessary due to the fact that the Kano State Government through its Kano State Revenue Administration (Amendment) Law 2017, had introduced and imposed a Consumption tax.
“The tax was payable by consumers of goods and services bought or rendered in any hotel, restaurant, eatery, bakery, suya spot, shopping mall, store, event centre and other similar businesses in the state”.
Oshinowo said this “amounts to a tax on the same goods and services, to which the provisions of the Value Added Tax Act, already applied.” Speaking further, the NECA director general stated that, “the court determined all the questions in favour of NECA and granted the reliefs sought.
The court set aside the provisions of the Kano State Revenue Administration (Amendment) Law 2017, as it amounted to the duplication of the Value Added Tax.” He further added that “the court further restrained the Government of Kano State and the Kano State Inland Revenue Service from implementing the provisions of the Kano State Revenue Administration (Amendment) Law 2017.” He condemned a situation whereby businesses are forced to pay double and/or multiple taxation; saying, “at the last count, businesses in Nigeria are encumbered with the payment of over 55 different taxes at the three levels of government.” He said: “The incidence of double taxation, particularly consumption tax, has assumed a very dangerous dimension, which we expect the federal government to rein in through an appropriate statutory or policy declaration.” The association expressed its confidence in the Rule of Law in Nigeria, “thus the recourse of NECA to the judiciary for relief in the face of illegality foisted upon its members.” He advised other state governments to operate within the ambit of law.