Maintain status quo on VAT collection, Appeal Court orders Rivers, Lagos

The Abuja Division of Appeal Court has ordered Rivers and Lagos states to maintain status quo on the collection of Value Added Tax (VAT) pending the determination of an appeal filed by the Federal Inland Revenue Service (FIRS).

The appellate court gave the order this Friday, saying that it was to preserve the ‘Res’ (subject matter) of the appeal before it.

The court, specifically ordered all the parties that have subjected themselves before it to “refrain from taking any action to give effect to the judgement of the Rivers State High Court”, which held that Rivers State Government and not FIRS has the right to collect VAT revenue in the state.

First News reported earlier that Lagos on Friday applied to the Appeal Court be joined as a co-respondent in the matter.

But, a three-man panel of justices of the court led by Justice Haruna Tsammani after it deferred hearing of an application by Lagos State till September 16, asked all the parties in the matter to maintain status quo.

Lagos, represented by its Attorney-General, Moyosore Onigbanjo (SAN), had argued that it should not be included in the maintenance of status quo order, since it was yet to be joined as a party in the FIRS appeal.