VAT collection dispute: Appeal Court orders Rivers, Lagos to maintain status quo


The Court of Appeal sitting in Abuja has ordered both Rivers and Lagos States to maintain status quo on the collection of Value Added Tax (VAT) pending the determination of an appeal brought before it by the Federal Inland Revenue Service (FIRS).

A three-man panel of Justices of the appellate court led by Justice Haruna Tsammani ruled that all the parties that have subjected themselves before it to “refrain from taking any action to give effect to the judgement of the Rivers State High Court”, which gave Rivers State Government the right to collect VAT revenue, instead of the FIRS.

The appellate court said the order was to preserve the ‘Res’ (subject matter) of the appeal before it.

The order was given after the court deferred hearing of an application Lagos State filed to be joined as an interested party in the matter, till September 16.

Meanwhile, the Lagos State had through its Attorney-General, Moyosore Onibanjo has opposed the court ruling, insisting that such order could not be binding on it, since it was yet to be joined as a party in the appeal by FIRS.

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