The Court of Appeal in Abuja on Friday stopped Rivers State government from collecting Value Added Tax (VAT) until all legal disputes relating to the matter are resolved.
The court ordered that the judgment of the state high court from which the state drew authorities to collect the tax be implemented.
A Federal High Court sitting in Port Harcourt had on Monday dismissed an application by the Federal Inland Revenue Service (FIRS) seeking to stop the Rivers state government from collecting VAT.
The FIRS, however, appealed the rulling at the the Court of Appeal.
Justice Haruna Simon Tsanami of the Court of Appeal who issued the order in Abuja on Friday also directed that the law passed by Rivers State House of Assembly and assented to by Governor Nyesom Ezenwo Wike must not be implemented.
The appellate court held that since parties have submitted themselves to the authorities of the court for adjudication of the matter, they must not do anything that will destroy the subject matter of the appeal.
