
The Nigeria Employers’ Consultative Association (NECA) has secured a beneficial judgment for its members in opposition to the Federal Authorities on the proposed plan to impose extra tax burdens on companies.
In a swimsuit filed in 2022, following a round from the Federal Authorities, which proposed to impose extra tax burdens on companies by way of the introduction of excise responsibility on non-alcoholic, carbonated and sweetened drinks, NECA had requested the court docket to dismiss the case on the grounds that the round was invalid and unjustifiable.
Different defendants joined within the swimsuit embody Minister of Finance, and the Minister of Funds and Nationwide Planning.
After three years of authorized fireworks, Justice O.A Egwuatu of the Federal Excessive Courtroom, Abuja dismissed the 2nd Defendant’s Preliminary Objection for lack of advantage.
Delivering judgment on the substantive case, the court docket held in abstract that the round issued by the 2nd Defendant (Federal Ministry of Finance) is invalid and ultra-vires stating that the powers of the 2nd Defendant; and the first Defendant (the Customs Service) just isn’t entitled to demand transport and feeding allowances from the plaintiffs (NECA members).
The court docket additional declared that the round entitled: “Approval for the Implementation of 2022 Fiscal Coverage Measures and Tariff Amendments,” dated March 1, 2022 issued by the 2nd Defendant (Honourable Minister of Finance, Funds and Nationwide Planning) is invalid and ultra-vires the powers of the 2nd Defendant
In his response shortly after the decision, the Director Normal, NECA, Adewale Smatt-Oyerinde, described the judgment as one other victory for organised companies in opposition to official arbitrariness and unlucky makes an attempt to impose extra burdens on companies.