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Appeal Court Restrains Rivers, Lagos Governments From Collecting Value-Added Tax



The Court docket of Enchantment in Abuja has stopped Rivers and Lagos State governments from amassing Worth Added Taxes (VAT).

Justice Haruna Simon Tsanami, in a ruling on Friday, directed that the legislation handed by Rivers State Home of Meeting and assented to by Governor Nyesom Ezenwo Wike have to be placed on maintain.

The decide gave the order hours earlier than Governor Babajide Sanwo-Olu of Lagos State signed the legislation on VAT.

The appellate court docket’s resolution adopted an utility by the Federal Inland Income Service (FIRS), searching for a keep of execution of the order of a Rivers State excessive court docket within the matter.

Wike not too long ago signed into legislation the invoice on Worth Added Tax (VAT) assortment within the state.


He signed the invoice which was not too long ago handed by the state Home of Meeting on the Authorities Home, Port Harcourt.

He mentioned the judgment of the Federal Excessive Court docket sitting in Port Harcourt had sufficiently addressed the illegality perpetrated by the Federal Inland Income Service (FIRS).

On Thursday, Lagos State Home of Meeting additionally handed the invoice after a unanimous vote by the lawmakers.

Nevertheless, the court docket has issued an order of perpetual injunction restraining the FIRS and the Legal professional-Normal of the Federation, Abubakar Malami, from amassing, demanding, threatening and intimidating residents of Rivers to pay to FIRS, personnel revenue tax and VAT.

Each Rivers and Lagos state governments have already enacted legislations to offer impact to the judgment in respect of VAT.

An earlier utility by the FIRS to the excessive court docket in Rivers to remain execution of the judgment was on Monday refused by Justice Stephen Dalyop Pam on the grounds that the appliance would negate the precept of fairness because the state legislature had already enacted legislation on the VAT assortment.


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