The Court of Appeal in Abuja has ruled that parties in the dispute over the administration of the Value Added Tax (VAT) to stay action pending the resolution of all legal issues in case.
A three-member panel of the court ordered parties to maintain status quo ante bellum and refrain from acts capable of jeopardizing the res (subject of the dispute).
Justice Haruna Simon Tsanami, in the lead ruling, ordered parties not to give effect to the August 9 judgment of the Federal High Court in Port Harcourt and the VAT law enacted by Rivers State.
The court ordered parties to hold their peace pending the hearing of the application filed by the FIRS for stay of execution of the judgment given by Justice Steven Pam in favour of Rivers State to collect VAT in the state.
The court equally granted leave to the Lagos State Government to bring an application to be heard in the case as an interested party in the appeal filed by FIRS against the Federal High Court judgment.
It noted that Lagos State’s right would be adversely affected if not heard.
The court then adjourned till September 16 for the hearing of pending applications, including the joinder application by Lagos.
In his August 9 judgement in a suit filed by the Rivers State government, Justice Stephen Pam of the Federal High Court, Port Harcourt, had held that the applicant (state government) and not the FIRS, has the right to collect VAT, Personal Income Tax in the state.
The Lagos State House of Assembly soon followed suit and passed a similar law empowering the state government to collect VAT in the state.
