September 10, (THEWILL) – The Abuja Court of Appeal has ordered the Lagos and Rivers state governments to hold off on collecting value-added tax (VAT) until all legal disputes relating to the matter are resolved.
All parties involved are to maintain status quo antebellum, which favours the Federal Inland Revenue Services (FIRS), pending the determination of a motion by Lagos State to join as an interested party.
The Lagos state Attorney-General, Moyosore Onibanjo (SAN), said the order to maintain the status quo is not binding on the state since it is not a party in the appeal by the FIRS.
The directive, given on Friday by Justice Haruna Simon Tsanami, means the state governments cannot enforce the VAT Collection Bills the respective governors had signed into law.
Justice Tsanami pointed out that having submitted themselves to the court’s authority for the matter’s adjudication, all parties involved are bound by the judgement and must “refrain from taking any action to give effect to the judgement of the Rivers State High Court.”
The case’s next hearing is billed for September 16 for hearing of motion for joinder by Lagos state.
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