The Abuja Division of the Court of Appeal on Friday ordered the Rivers and Lagos authorities to stop the collection of Value Added Tax (VAT) pending determination of the application filed by the Federal Inland Revenue Service, FIRS.
The court handed down the ruling in Abuja on Friday, saying all parties should maintain the status quo until an application raised by the FIRS has been dispensed.
This was as Lagos State Governor Babajide Sanwo-Olu had earlier signed into law the State VAT Bill as passed by the House of Assembly.
The Governor signed the “bill for a law to impose and charge VAT on certain goods and services” at about 11.45am today, after returning from an official trip to Abuja .
By this act, the Bill has now become a Law.
Justice Haruna Tsanami who issued the order said the law passed by Rivers State House of Assembly and signed into law by Governor Nyesom Wike must not be implemented.
The court warned both Lagos and Rivers not to go against its order, even though Lagos had yet to be joined as a party to the suit.