The Appeal Court sitting in Abuja on Friday ordered all parties including Rivers and Lagos states to maintain the status quo on the collection of Value Added Tax (VAT), pending the determination of an appeal that was lodged before it by the Federal Inland Revenue Service (FIRS).
All parties were ordered to “refrain from taking any action to give effect to the judgement of the Rivers State High Court,” which allowed the Rivers State government to collect (VAT) revenue instead of the FIRS.
The order was given by a three-man panel of the appellate court led by Justice Haruna Tsammani while ruling on an appeal filed by the FIRS.
Governor Nyesom Wike assented to the Valued Added Tax Law, 2021 on August 19, along with four others following their passage by the Rivers State House of Assembly.
His assent followed the judgement delivered by Justice Stephen Pam of the Federal High Court in the state capital, who held that states should collect VAT, and not the Federal Government.
In Lagos state, Governor, Mr Babajide Sanwo-Olu, on Friday signed into law the state’s VAT Bill which would empower Lagos to collect VAT. The bill was read for the third time and passed by lawmakers in the Lagos State House of Assembly on Thursday.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
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