…as Appeal Court Asks parties to maintain status quo
The Lagos State Governor, Mr Babajide Sanwo-Olu, has signed into law the state Value Added Tax Bill.
With this, Lagos joins Rivers State which has also signed a VAT law that authorizes the state to collect the consumption tax, instead of the current practice under which the Federal government through the Federal Inland Revenue Service.
On the same day, however, the Court of Appeal sitting in asked all the parties in the dispute over the administration of VAT to stay action pending the resolution of all legal issues that have arisen.
The signing by the Lagos State governor was disclosed by the state Commissioner for Information and Strategy, Mr Gbenga Omotoso, who said in a statement on Friday, that the governor signed the bill after returning from an official trip.
“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,” he said.
The Bill was passed by the State House of Assembly on Thursday, after a public hearing on it conducted by the legislature.
A three-member panel of the court on Friday, ordered parties to maintain status quo ante bellum and refrain from acts capable of jeopardising the res (subject of the dispute).
The Appellate court agreed with counsel to the FIRS, Mahmud Magaji (SAN) that, having submitted to its (the court’s) jurisdiction, it was incumbent on parties to preserve the res.
Giving the lead judgment, Justice Haruna Simon Tsanami, ordered parties not to give effect to the August 9 judgment of 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 FIRS for stay of execution of the judgment given by Justice Steven Pam in favour of Rivers State to collect VAT in the state.
Governor Nyesom Wike had defended the State government’ action, arguing it was in response to injustice in the distribution of the VAT proceeds among the states.
The court also 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.
The court argued that Lagos State’s right would be adversely effected if not heard.
The court then adjourned till September 16 for the hearing of pending applications, including the joinder application by Lagos.
