VAT Collection: Appeal Court Orders Rivers To Stay Action

Following the legal controversy surrounding bids by the Lagos and Rivers State governments to start collecting Value-Added Tax (VAT), the Appeal Court sitting in Abuja has ordered parties involved to maintain status quo.

The ruling was given following an appeal filed by the Federal Inland Revenue Service (FIRS) seeking a stay of execution on High Court judgement empowering Rivers State to collect VAT.

The Cable reports that a three-member panel of the court led by Haruna Tsammani ordered all parties in the matter to “refrain from taking any action to give effect to the judgement of the Rivers state high court.”

The lower court had held that the Rivers State Government was right to collect VAT.

During the proceedings, Moyosore Onigbanjo, the attorney-general of Lagos State, prayed to be joined in the matter.

But the court ruled that it would hear their prayers on September 16.