The Federal Inland Revenue Service has urged taxpayers not to panic over recent court rulings authorising the Rivers state government as the rightful authority to collect Value Added Tax (VAT) from businesses in the state.

Special assistant to the FIRS chairman on media and communications, Johannes Wojuola, gave the advice on Monday in a statement in Abuja.

Mr Wojuola said until the appeal or supreme court determines the matter, taxpayers in the state were to continue paying their VAT obligations to the FIRS.

“There is an injunction pending appeal of the said judgement, therefore we assure taxpayers that there is no cause for alarm.

“The Federal High Court ruling should not breed any confusion as to the obligations of taxpayers. Taxpayers must continue to comply with the Value Added Tax Act pending the final determination of appeal.

“Taxpayers must continue to honour their tax obligations under the VAT Act. Failure to do this would put them on a collision course with the law,” the special assistant said.

Mr Wojuola said the agency was confident that given the extant laws, the arguments and the case put forward, it will earn a favoured judgment at the appellate court.

The Rivers state government had on Monday ordered the immediate enforcement of its Value Added Tax Law 2021 across the entire state, following the failure of the FIRS to secure a stay-of-execution order against the state.