A Court of Appeal in Abuja has halted the Rivers State government from collecting Value Added Taxes VAT until all legal disputes relating to the matter are cleared.
Justice Haruna Simon Tsanami issued the order on Friday and also directed that the law passed by the Rivers State House of Assembly, signed by the Governor, Nyesom Wike must not be implemented.
He argued that since both 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.
Justice Tsanami also granted a 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.