Court voids Delta’s 5% consumption tax on VAT-linked transactions

Summary

The Federal High Court in Abuja has set aside parts of a Delta State law that imposed a 5% consumption tax on transactions already covered by VAT.

Highlights

• Justice Peter Lifu struck out Sections 3 and 4 of the Delta State Hotel Occupancy, Restaurants and Departmental Stores Consumption Tax Law, 2017.
• The court also nullified Section 7(b), Item 13 of the relevant taxes and levies schedule order.
• A perpetual injunction was issued against the Delta State Attorney-General, the state internal revenue board and their agents from enforcing the provisions.
• The suit was filed by the Nigeria Employers’ Consultative Association and Retail Supermarkets Nigeria Limited, operators of Shoprite stores.