Counsel for the U.A.C Nigeria Plc, Chief Tolani Musa, has lauded the judgment of the Cross River State High Court, which declared section 2 of the states Tourism Development Levy (amendment) Law No 5 of 2008 null and void.

The court in a judgment on the suit marked HC /229/2019, declared that the section must be set aside as it purports to usurp the powers conferred upon the National Assembly under section 4 (1), (2), (3), (4), by both the Exclusive and Concurrent Legislative Lists Part 1 and 2 of the Second Schedule to the 1999 Constitution (as altered).

The suit was between U.A.C (Trading under the name of UAC Restaurants – Mr Biggs) and five others namely; Government of Cross River State, Cross River State Board of Internal Revenue, Attorney General/Commissioner for Justice, Attorney General of the Federation and Federal Inland Revenue Service, who are the 1st, 2nd, 3rd, 4th and 5th defendants.

The court also set aside sections 2 and 4 (1) of the state Tourism Development Levy Law and made order for the 1st to 3rd defendants to refund the sum of N1, 600,000, which the plaintiff paid in protest to forestall distrainment of its goods and chattels and closure of its premises anywhere in the state.

The court granted the perpetual injunction canvassed by the plaintiff against the first to 3rd defendants, their agents, officers, servants or privies from harassing and intimidating the plaintiff or it’s officers, servants in its restaurant or trespassing upon its properties and premises including closing down its operations in the state.

Assessing the costs of the action in the sum of N500,000 against the 1- 3 defendants in favour of the plaintiff, Justice Elias Abua freed the 4th and 5th defendants of any liability in this action.

Musa, who is an Aba-based legal practitioner, was reacting to the said judgment delivered November 26, 2021, saying that he was overwhelmed by this verdict, describing it “as well resounded and researched.”

Musa, who said he filed the originating summons on February 16, 2010 at the Federal High Court sitting in Calabar, added that it was later transferred to the state high court upon the application of the first to third defendants.

In the suit, the plaintiff had urged the Court to declare that matters involving taxation of incomes, profits and Value Added Taxes are matters under the Exclusive Legislative List in Part 1 of the Second Schedule to 1999 Constitution and beyond the power of the Government of Cross River State to make such laws.

The plaintiff also urged the Court to make four orders, namely – that Cross River State Tourism Development Levy Law No 20 of 2007 and Amendment Law No 5, 2008 as enacted by the House of Assembly imposing obligations of levying, taxing and collection of the said levies and taxes on the plaintiff, amounts to double taxation and therefore prejudicial to the rights and interests of the plaintiff and its teeming consumers in the state.

“An order compelling the 1st, 2nd and 3rd defendants to refund the sum of N1, 600, 000 paid to it by the plaintiff in protest to forestall distrainment of the plaintiff’s chattels and the closure of its premises within the state for its failure within the time stipulated to comply with the aforesaid Law of Cross River State.

“Order of perpetual injunction restraining the 1st and 2nd defendants by themselves, agents, officers, servants and privies from harassing, intimidating the plaintiff and its staffers in its restaurants and or distraining, sealing and closing down its operations anywhere within Calabar or by any means coercing the plaintiff to commence the collection and remittance of the said Tourism Development Levy from its customers anywhere within the state, including order for cost of this action,” the plaintiff had prayed.