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Appeal Court stops Rivers And Lagos From Administration Of VAT

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Abuja Court of Appeal has on Friday ordered parties in the dispute over the collection of Value Added Tax, VAT to maintain the status quo pending the resolution of all legal issues in contention to the matter.

Recall the Federal Inland Revenue Service, FIRS. has lodged an appeal to stop parties including Lagos and Rivers from the states’ administration of VAT collection.

The Nation reports that a three-member panel of the court have ordered parties to maintain status-quo antebellum and refrain from acts capable of jeopardising the subject of the dispute.

The court agreed with the lawyer to the Federal Inland Revenue Service (FIRS), Mahmud Magaji (SAN) that, having submitted to its (the court’s) jurisdiction, it was incumbent on parties to preserve the res.

Justice Haruna Simon Tsunami, in the lead ruling, ordered parties not to give effect to the August 9 judgment of the Federal High Court in Port Harcourt and the VAT law enacted by Rivers State.

The court ordered parties to hold their peace pending the hearing of the application filed by FIRS for a stay of execution of the judgment given by Justice Steven Pam in favour of Rivers State to collect VAT.

FIRS in its appeal marked CA/PH/282/2021, had prayed the appellate court to not only set aside the High Court judgement but to also stay its execution.

Meanwhile, the Governor of Lagos State Babajide Sanwo-Olu just today Friday, September 10 signed the State Value Added Tax (VAT) Bill into law.

This coming after the Lagos State House of Assembly passed both VAT law and the bill that prohibits open cattle grazing in the state yesterday.

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