Appeal Court stops Rivers State from collecting VAT
Appeal Court stops Rivers State from collecting VAT
The Court of Appeal sitting in Abuja, Nigeria’s Capital has stopped the Rivers State government from collecting Value Added Taxes, VAT pending the determination of a suit filed by the Federal Inland Revenue Service(FIRS)
The Appellate Court also ordered that the judgment of a High Court in River State that empowered the state to collect the tax should not be implemented.
Justice Haruna Simon Tsanami who issued the order in Abuja 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 destroy the subject matter of the appeal.
In specific terms, 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 a hearing of the motion for joinder by Lagos State.
FIRS, in an appeal, is praying the court to set aside the judgment of a Rivers State High Court which granted power to the state to collect Value Added Tax, VAT.
The tax collection agency is also asking the appellate court to stay the execution of Rivers’ judgment.
Meanwhile the Court of Appeal deferred the request by the Lagos State Government to join the suit as a respondent. (VON)
