The Court of Appeal in Abuja, has asked both the federal inland revenue and Rivers state government to maintain status quo ante, and refrain from taking any action that would give effect to the judgment of the federal high court, Rivers State pending the determination of the appeal filed by the federal inland revenue, over Rivers state revenue collection.
Justice Haruna Tsanami who issued the order also directed 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 rest of the matter.
Also Read: FIRS ignores court judgment on VAT collection
When the matter came up on Friday, the Attorney general of Lagos state, Moyosore Onigbsanjo, SAN told the court of his intention to join in the suit filed by the Firs, that because Lagos state just has also passed its bill on the revenue collection.
But the move was opposed by counsel for the FIRS, Mahmoud Mogaji saying his application should be giving priority especially in the circumstances of the case before any form of joinder in the suit.
Moreover taking their application to stay the execution of the Port Harcourt judgment, will not in anyway jeopardize the interest of the party.
On the part of the Rivers state government, it’s counsel Emmanuel Ukala supported the idea of the joinder.
The Panel after taking all arguments ordered Lagos state to join as a party in the case
Ruling on the application to stay execution of the lower court decision, the court of appeal ordered all parties to maintain status quo, pending hearing and determination of the suit.
FIRS, in the appeal is asking the court to set aside the judgment of a Rivers State High Court, which granted power to the state to collect Value Added Tax, VAT.
The tax collection agency, is also asking the appellate court to stay the execution of Rivers’ judgment, which empowered Rivers State government to collect Value Added Tax, VAT, within Rivers State on the state government and not FIRS.
The matter has been slated for September 16 for hearing of motion for joinder by Lagos State.
FIRS had through a motion on notice, applied for a stay of execution on the earlier judgment delivered by Justice Stephen Pam, affirming the constitutional role of the state governments to collect VAT and not FIRS.
(Editor: Terverr Tyav)
