Akwa Ibom and Adamawa state governments on Tuesday have supported the Rivers State Governor, Nyesom Wike in his bid to stop the Federal Government from collecting Value Added Tax from Rivers States.
The Akwa Ibom House of Assembly, on its part, said it would soon begin work on a bill that would enable the state to collect VAT.
Lagos State Government said it would go ahead with the VAT bill, which passed second reading in the state House of Assembly on Monday.
On Monday, the Lagos State Government toed the path of Rivers State as a bill to empower it to collect VAT scaled second reading in the state House of Assembly.
The Adamawa State Government is studying the judgment as it was of interest to the government and they have backed the Rivers State Government’s move to collect VAT in the state as opposed to the Federal Government collecting VAT from states.
But the governments of Ekiti, Osun and Benue states said they were still studying the situation before making any move.
The Federal High Court sitting in Port Harcourt in its judgment last month in a suit marked FHC/PH/CS/149/2020 held that the Rivers State Government had the powers to collect VAT within its territory.
The Federal Inland Revenue Service, on Monday, prayed the court to stay execution on the judgment.