The Court of Appeal stops Rivers, Lagos from collecting VAT

By Eyo Nsima

The Court of Appeal has stopped Rivers and Lagos State Governments from collecting the Value Added Tax, VAT.

In his ruling, Justice Haruna Simon Tsanami, also ordered that the law passed by Rivers State House of Assembly and assented to by Governor Nyesom Wike should be suspended.

Before then, a Federal High Court in Port Harcourt had upheld the powers of the state to collect Value Added Tax (VAT) and Personal Income Tax.

Also, the court had issued an order of perpetual injunction restraining the FIRS and the Attorney General of the Federation, from collecting, demanding, threatening, and intimidating residents of Rivers to pay to FIRS, personnel income tax, and VAT.

Similarly, the Lagos state government had also enacted legislation to back its decision to collect VAT in the State.