Taxation

With due respect to the learned counsel for the appellant, the above principle of law, and without much ado places the Sales Tax Law of Lagos State in abeyance. Should the two laws be allowed to operate simultaneously, it will amount to double taxation on the same goods and services. The consumer would have to suffer under the weight of the two laws while the two tiers of government smile to the bank. This is unhealthy and must not be allowed to stand.

A 'taxable person' is defined in Section 46 of the VAT Act as:
"a person (other than a public authority acting in that capacity) who independently carries out in any place an economic activity as a producer, wholesale trader, supplier of services (including mining, and other related activities) or person exploiting tangible or intangible property for the purpose of obtaining income therefrom by way of trade or business."

The tax has already been collected by the 1st respondent pursuant to the VAT Act. When a dispute arose as to which of the two claimants the tax collected should be remitted to, it rightly approached the Court for direction. There is no doubt in my mind that it would amount to double taxation for the same tax to be levied on the same goods and services, payable by the same consumers under two different legislations. This issue is accordingly resolved against the appellant.

In resolving this issue, I shall first address the argument of learned counsel for the appellant to the effect that the VAT Act is unconstitutional for not being within the legislative powers of the National Assembly. In the course of resolving Issue 2 earlier, I did hold that the VAT Act is an existing law by virtue of Section 315 (1) of the 1999 Constitution and that the Act has covered the field on the subject of sales tax and therefore prevails over the Lagos State Sales Tax (Schedule Amendment) Order 2000. I am in complete agreement with learned counsel for the 1st and 2nd respondents that not only do both legislations cover the same goods and services, they are also targeted at the same consumer.