Court nullifies Delta 5% consumption tax on VAT transactions

The Federal High Court in Abuja nullified parts of Delta State's 2017 consumption tax law that imposed a 5% tax on transactions already covered by VAT. Justice Peter Lifu set aside the conflicting sections, issued a perpetual injunction against enforcement by state officials, and ruled that the federal VAT law prevails where there is inconsistency.

Pidgin: Federal High Court for Abuja don cancel some parts of Delta State 2017 consumption tax law wey bin dey put 5% tax on top transactions wey VAT don already cover. Justice Peter Lifu throway the conflicting sections, give perpetual injunction against Delta state officials from enforcing am, and rule say federal VAT law go prevail anywhere wey inconsistency dey.

How this affects you: NECA (representing over 480 businesses) and Shoprite stores in Delta State are relieved of the additional 5% consumption tax burden on VAT-covered transactions.