The Court of Appeal sitting in Abuja has temporarily stopped Rivers State government from collecting Value Added Taxes (VAT) until all legal disputes relating to the matter are resolved.
Rivers State Governor Nyesom Wike had last two weeks , following an Act of the State Assembly and the Federal High Court Port Harcourt dismissal of an application by Federal Inland Revenue Service (FIRS) to stay execution of judgment in favour of VAT collection by the State government directed it’s officials to implement the VAT Act by the end of this month.
On Thursday, the Lagos State Assembly enacted a similar bill on the Valued Added Tax (VAT), and forwarded it to the State Governor Babajide Sanwo- Olu for his assent.
The Appeal Court which sat as a vacation panel ordered that the judgment of the Federal High Court Port Harcourt which the FIRS had appealed against should be stayed .
Justice Haruna Simon Tsanami who issued the order in Abuja on Friday also directed that the law passed by Rivers State House of Assembly and assented to by governor Nyesom Ezenwo Wike should not be implemented for now .
The appellate court held that since parties have submitted themselves to the authorities of the court for adjudication of the matter, they must not do anything that Will destroy the subject matter of the appeal.
In specific term, Justice Tsanami granted status quo ante below in favour of the Federal Inland Revenue Services FIRS and against the respondents.
The matter has been slated for September 16 for hearing of motion for joinder by Lagos State.
FIRS, in an appeal marked CA/PH/282/2021, is praying the court to set aside the judgment of a Federal High Court Port Harcourt division which ruled that the state has power to collect Value Added Tax, VAT.
The tax collection agency is also asking the appellate court to stay the execution of Rivers’ judgment.