Appeal Court Punctuates Rivers State's Quest To Collect VAT

Appeal Court Punctuates Rivers State's Quest To Collect VAT

- Lagos files motion for joinder

By Frank Ajufo

The Court of Appeal has asked the Government of Rivers State to cease from proceeding with the plans to begin the collection of Value Added Tax, (VAT) in the state, until all issues being disputed in court in relation to the subject matter are resolved.

The ordered was given by the court at its Abuja Division, instructing that earlier judgement obtained from the State High Court should not be effected.

The directive was issued by Justice Haruna Tsanami who further declared that the law passed by Rivers State House of Assembly and assented to by governor Nyesom Wike cannot take effect.

The court explained that given the fact that parties have submitted themselves to the authorities of the court for adjudication on the matter, no should be allowed to proceed on any path that may be jeopardise the central point of the appeal.

Justice Tsanami therefore granted status quo ante in favour of the Federal Inland Revenue Services, (FIRS).

In the appeal marked CA/PH/282/2021, the FIRS is praying the court to set aside the judgment of a Rivers State High Court which granted power to the state to collect VAT. Furthermore, the FIRS is also asking the appellate court to stay the execution of Rivers' judgment, which the court has granted.Parties are expected to return to court on September 16 for hearing of motion to be joined in the suit by Lagos State.