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Appeal Court Stops States From Proceeding With VAT Collection

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The Court of Appeal sitting in Abuja has ordered all parties to maintain status quo and refrain from taking action that would give effect to the judgement of a Federal High Court in Port Harcourt.

The Federal High Court had ruled in favour of Rivers State government to collect Value Added Tax (VAT). But the Appeal Court has stalled the process, preferring parties to maintain status quo which will subsist pending the hearing and determination of the instant suit.

A three-man panel of the appellate court led by Justice Haruna Tsammani gave the order on Friday while ruling on an appeal filed by the Federal Internal Revenue Service (FIRS).

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.

Similarly, the respondents have been given two days to file their response, while the applicants were given a day to reply on the point of law.

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