A Federal High Court, Lagos, has adjourned the suit filed by the human rights lawyer, Toluwani Adebiyi against the 36 Attorneys General of the Federation and two others over double taxation to February 27, 2024 for report of service to the defendants.

The activist had in the suit marked FHC/L/CS/1743/23, sued the 36 AGs, the Federal Inland Revenue Service (FIRS) and the Attorney General of the Federation (AGF) for allegedly levying consumption tax and Value Added Tax (VAT) on citizens, by the states and Federal Government (FG).

When the matter came up last week before Justice Yellim Bogoro, she ordered that the plaintiff should proceed to put on notice the 38 defendants in the suit by serving the interlocutory application and other court processes on them and subsequently adjourned to February 27, 2024 for report of service and for further hearing.

The plaintiff had vowed to challenge the double taxation “simultaneously charged and collected mendaciously on the same goods and services in Nigerian Hotels, Restaurants and Event Centres, which affect all users of such facilities in the country.”

The Plaintiff maintained that the double taxation charged and collected simultaneously through VAT and Consumption tax, if stopped, is likely to help the government address the issue of inequity in sharing formulas being strongly contested by some states.

He argued that it will make some states which are presently unviable and depending on federal allocation to become viable and more resourceful, while more money can be available to the Federal Government.

He also argued that it would put to an end the intimidating and business threatening “commando” style adopted by some States’ Tax implementation Task Force usually unleashed on Hotels, Restaurant and Event Centres (which are the collecting agents).

The matter, he said, may be a blueprint, which may possibly put an end to the protracted and unending tax entanglement between the Federal Government and the States.

The lawyer had in 2015, challenged all the 11 Electricity Distribution Companies across the nation and the National Electricity Regulation Commission (NERC), before Justice Mohammed Idris, then of the Federal High Court, Lagos (but now in court of appeal) over the exploitation of electricity consumers.

After he won the case, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) embarked on a nationwide protest to enforce the execution of the judgment, which then resulted in improved service.