A few days ago Governor Akinwunmi Ambode of Lagos state has said that out of the state’s 22 million residents, only 600,000 pay taxes, and I'm really confused about this.

I've been in this country all my life and I have no idea how tax works.

Federal government - Every salary earner in Nigeria pays tax, to the Federal government. It's inevitable. Although there are shady ways employers and business pay less tax.


State Government -A friend of mine works from home and pays taxes to the Lagos state government, willingly.


Local government - No matter how small your shop is, you pay council tax at least. and there are some other levies collected by Local government from streets and communities.


We all pay value added taxes (VAT) when we buy products or services.


So, are we supposed to pay tax to federal, state and local government?

Are there ways we can know if we are been taxed illegally?

Do we have the right to know what our taxes are been used for?

Who is suppose to tax us?

Are customers supposed to pay VAT?

Omohayek Madcow1 davidif Ishilove naptu2

and every other person that can contribute.

As a Worker, you only pay one kind of tax and that is the Personal Income Tax and it is the State Government where you work that takes this.

Companies pay Taxes to the Federal Government (FIRS)

I dey come back.

MadCow1:
As a Worker, you only pay one kind of tax and that is the Personal Income Tax and it is the State Government where you work that takes this.

I assume the personal income tax is the one deducted from your wages/salary.

Then how come Ambode says only 600,000 lagosians pay tax while there are millions of salary earners in Lagos?

He is definitely talking shit.

PIT is indeed deducted at source by most corporate entities and remitted on behalf of the Employee to the Government and the certificate handed to the Employee.

So if we calculate all the Banks in Lagos, Private Hospitals, Oil Companies, Shipping Companies and all the other sectors in Lagos combined, That figure is utterly unbelievable.

Then for Private Business Men/Entrepreneurs, they pay same but this time they pay themselves directly at a Tax Office after filling out the requisite forms.

LastMumu:



You will be surprised by how many companies actually remit that Pay-as-you-Earn to the state government, most companies don't. And don't let me get started on the massive tax evasion going on by individuals and corporations entities nationwide. How many Lagosians have the tax clearance certificate card or how many have tax identification number?
Lagos state government makes more money monthly through NURTW aka agberos than they make from Personal Income tax. Fact!

I don't doubt this at all.. My first job deducted all applicable taxes at source and even after 4 years with them I don't have a single tax reciept or pension fund from them. My second company actually issued me my tax clearance certificates though.

However for Lagos State Government to say just 600k people pay taxes in Lagos is a gross underestimation.

So besides allocation from federal government, states make money from taxes?

Joavid:
So besides allocation from federal government, states make money from taxes?

Yap Yap. Your personal income tax is paid to the state government of where you reside.

MadCow1:
As a Worker, you only pay one kind of tax and that is the Personal Income Tax and it is the State Government where you work reside that takes this. .

Fixed.

sauerr:

My phone crashed. Still trying to find some way round it. You good?

I was wondering what happened.
im ok.

By the time you people drag the nation back to regionalism you know the impact of taxes on you, its not a child play.
people ran to farm in the old days because of tax, even bicycle have licence!
have money or not, the tax is obligation.

LastMumu:



Yap Yap. Your personal income tax is paid to the state government of where you reside.





Fixed.

[quote aut

MadCow1:


I don't doubt this at all.. My first job deducted all applicable taxes at source and even after 4 years with them I don't have a single tax reciept or pension fund from them. My second company actually issued me my tax clearance certificates though.

However for Lagos State Government to say just 600k people pay taxes in Lagos is a gross underestimation.

hor=Joavid post=58507864]A few days ago Governor Akinwunmi Ambode of Lagos state has said that out of the state’s 22 million residents, only 600,000 pay taxes, and I'm really confused about this.

I've been in this country all my life and I have no idea how tax works.

Federal government - Every salary earner in Nigeria pays tax, to the Federal government. It's inevitable. Although there are shady ways employers and business pay less tax.


State Government -A friend of mine works from home and pays taxes to the Lagos state government, willingly.


Local government - No matter how small your shop is, you pay council tax at least. and there are some other levies collected by Local government from streets and communities.


We all pay value added taxes (VAT) when we buy products or services.


So, are we supposed to pay tax to federal, state and local government?

Are there ways we can know if we are been taxed illegally?

Do we have the right to know what our taxes are been used for?

Who is suppose to tax us?

Are customers supposed to pay VAT?

[/quote]

Joavid:


I was wondering what happened.
im ok.

PIT are meant to be paid by individuals who own a small/medium/large scale business (eg) _seun while employees of both private and public enterprise are meant to pay what is called PAYE(Pay as you earn).PAYE is been deducted from your salary before get your net pay.

Also as a self employed or business owner,you are suppose to pay VAT from your annual income to the federal govt.,but in most cases Nigerians don't pay taxes except or until an issue arise in which they need to submit a copy of their TAX certificate.

Let me give you some examples that have witness in which people had to run to pay their tax.If your kid is entering JSS1 or SS1 to any of the LASG school,TAX certificate copy is part of the requirement in which the father/mother/guardian must present to the school.

Another instance is when you have a court case involving land in Lagos or criminal related cases,the judge might ask for a guarantor or surety with tax certificate copy as among other requirement.

When it comes to taxes in Nigeria,they are many,more than 20,but I don't blame Nigerians for not paying taxes,the govt does not make good use of our taxes,they pocket and enjoy the money with their family alone.