The court of Appeal sitting in Abuja on Friday stopped the Rivers State government from collecting Value Added Tax (VAT), as it ordered all parties (Rivers State and the Federal Inland Revenue Service, FIRS) to maintain status quo and refrain from taking any action that would give effect to the judgment of the Federal High court, Rivers State, pending the determination of the instant suit.
Justice Tsammani stepped down the matter for ruling and ordered all parties to maintain the status quo and desist from taking action that would give effect to the judgement of the Federal High Court in Port Harcourt, pending the hearing and determination of the instant suit.
The respondents were given two days to file their response, while the applicants were given a day to reply on the point of law.
The court also ruled that the motion of joinder by the Lagos State government be heard and gave the applicants two days to file their written addresses.
The judgement comes after an appeal filed by the FIRS following the judgement of the Port Harcourt High Court.
Ripples Nigeria reported that a Federal High Court in Port Harcourt had on September 6 dismissed an application by the FIRS, seeking to stop the Rivers State government from enforcing the High Court judgement vesting the power to collect VAT within Rivers State on the state government and not FIRS.
The FIRS had, through a motion on notice, applied for a stay of execution on the earlier judgement delivered by Justice Stephen Pam, affirming the constitutional role of the state governments to collect VAT and not FIRS.
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