Appeal Court has banned Rivers and Lagos State Governments from collecting VAT.

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The Court of Appeal in Abuja has stopped the Rivers State government from collecting Value Added Taxes VAT until all legal disputes relating to the matter are resolved.

Onyxnewsng gathered that the court ordered that the judgment of the state high court from which the state drew authorities to collect the tax be implemented.

Justice Haruna Simon Tsanami who issued the order in Abuja on Friday also directed that the law passed by Rivers State House of Assembly and assented to by Governor Nyesom Ezenwo Wike must not be implemented.

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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 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 marked CA/PH/282/2021, is praying the court to set aside the judgment of a Rivers State High Court which granted powers 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.

At the same time, Governor Sanwo-Olu has signed into law the Lagos State VAT Bill as passed by the House of Assembly.

Onyxnewsng understands that the Governor signed the “bill for a law to impose and charge VAT on certain goods and services” at about 11. 45am today, after returning from an official trip to Abuja .

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