THE Court of Appeal in Abuja has held that parties should not effect the ruling on value added tax (VAT) given by the Federal High Court of Rivers State.

This is in order to hear and determine the application filed by the Federal Inland Revenue Services (FIRS).

The decision to maintain ‘status quo’ was made by a three-man panel of appeal court justices, which was led by Haruna Tsammani.

The ICIR had reported on how the FIRS Counsel Mahmoud Magaji had sought the stay of execution of the Rivers State High Court’s judgment.

Counsels to the Rivers State Government Emmanuel Ukala and Oyosore Onigbanjo opposed the application regarding the maintenance of the status quo.

The counsel to the Attorney General of the Federation (AGF) Tijani Ghazali, however, supported the application.

The Court of Appeal adjourned the case until until September 16, at which time it was also set to hear the application of Lagos State to join Rivers State in the appeal filed by the FIRS, challenging the Rivers State High Court judgment.

This is a blow on Governor Nyesom Wike who said he would begin to collect VAT from companies in Rivers State, following the judgement earlier given by the high court, which gave him powers to collect same.