The Court of Appeal sitting in Abuja has barred Rivers and Lagos States from collecting Value Added Tax, VAT until all legal disputes relating to the matter are resolved.
The Appeal court ordered that the judgment of the Federal High Court from which the State drew its power to collect the tax must not be implemented.
Justice Haruna Simon Tsanami who issued the order in Abuja on Friday, September 10, also directed that the law passed by Rivers State House of Assembly and assented to by governor Nyesom Ezenwo Wike must not be implemented.
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 affect the subject matter of the appeal.
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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.
In an appeal marked CA/PH/282/2021, FIRS is praying the court to set aside the judgment of a Federal High Court in Port Harcourt which granted power to the state to collect VAT.