The Court of Appeal, in Abuja, has ordered the government of Rivers and Lagos state to refrain from any action giving effect to the 9th August 2021 judgment of Rivers State High Court, which conferred powers on the state to collect Value Added Tax (VAT) and Personal Income Tax.
Delivering the ruling on an appeal by the Federal Inland Revenue Service (FIRS) seeking a stay of execution of the judgment and injunction, the panel of Justices of the appellate court urged parties in the suit to hold on in the execution of the judgement pending the determination of a motion by Lagos State to join as an interested party.
It would be recalled that a Federal High Court sitting in Port Harcourt had, last week restrained the FIRS from collecting some taxes from residents of Rivers State.
The court declared that Rivers State Government should collect the VAT and Personal Income Tax (PIT) in the State and not the FIRS.
The court presided over by Justice Stephen Dalyop Pam, issued an order of perpetual injunction restraining the FIRS and the Attorney-General of the Federation, both first and second defendants in the suit, from collecting, demanding, threatening, and intimidating residents of Rivers State to pay to FIRS, personnel income tax, and VAT.
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