In the latest development in the legal tussle between states and the FIRS over whose responsibility it is to collect VAT, the Appeal Court, sitting in Abuja has ordered all parties to maintain the status quo and refrain from taking action that would give effect to the judgement of a Federal High Court that allowed the Rivers State government to collect Value Added Tax (VAT), pending the hearing and determination of the instant suit.
A three-man panel of the appellate court led by Justice Haruna Tsammani gave the order on Friday while ruling on an appeal filed by the Federal Internal Revenue Service (FIRS).
This comes after Lagos State Governor, Babajide Sanwo-Olu, signed into law, a bill empowering the state government to collect Value Added Tax (VAT), a day after the Lagos State House of Assembly unanimously passed the state’s Value Added Tax (VAT), a move also preceeded by the action of a federal high court in Port Harcourt placing a restraining order on the Federal Inland Revenue Service (FIRS) from collecting VAT in Rivers – empowering the state government in that regard.
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