The Court of Appeal in Abuja has stopped the Lagos and Rivers State government from collecting Value Added Taxes (VAT) until all legal disputes relating to the matter are resolved.
Also, the court ordered that the judgment of the State high court from which the States drew authorities to collect the tax must not be implemented.
Justice Haruna Simon Tsanami who issued the order in Abuja on Friday also directed that the law passed by Rivers State House of Assembly and assented to by Governor Nyesom Wike must not be implemented.
The appellate court held that since 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.
In specific term, Justice Tsanami granted 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 hearing of 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 power to the state to collect VAT.
The tax collection agency is also asking the appellate court to stay the execution of Rivers’ judgment.