The Court of Appeal judgement issued on Friday, for status quo to be maintained in the case by the Federal Inland Revenue Service, FIRS, against the Governor Nyesom Wike-led Rivers State Government, has been interpreted to mean that the State Government is to continue to collect Value Added Tax, VAT, from all Oil companies and other businesses in the State, until any contrary judgement other than that of the Federal High Court, is given, .
This was made known by a Human Rights Lawyer and Senior Advocate of Nigeria, SAN, Mike Ozekhome.
Recall, that Justice Haruna Tsammani of the Court of Appeal in Abuja, had adjourned to September 16, to hear the application by the Lagos State Government in the said case, after applying to join in the suit, and asked all parties to “maintain status quo”.
Reacting, in his interpretation of “maintain status quo” as reportedly said by Justice Tsammani, Mike Ozekhome said: “Clearly, the status quo ante bellum was before the breakout of the hostilities.
“The hostilities broke out when the FIRS dragged the Rivers State Government to court, arguing that it cannot collect VAT based on its law. The said Law was already duly passed and made operational by Rivers State House of Assembly, that it has the constitutional competency under Section 4 of the Constitution to do so.
“The Federal High Court, Port Harcourt, Rivers State, had earlier held that it was the Rivers State Government that was competent to collect VAT, not the FIRS.
“The Law was already therefore in operation before the FIRS challenged the validity of a Federal High Court judgement, Port Harcourt, that had given the Rivers State Government the power to collect the VAT.
“So, the status quo is that it is the Rivers State Government that has the power to collect VAT, until perhaps, the Court of Appeal rules otherwise, and sets aside the Federal High Court judgement.”
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