New VAT Rate In The Twilight Of The Old Regime

What does the Nigerian Government take Nigerians for?
Fools? I don't think so.
They should reverse their raise in VAT now 10% instead of 5%.

http://www.tribune.com.ng/06062007/news/news11.html <- for every 100 naira you pay Glo, they must pay 10.

wowe i thought the nigeria of today is free and lawless country but now i see that this country has started imposing tax which are benefitting to the masses, how ever to the rich does not affect them one bit cos they making a fortune, and the poor are left to suffer the consequences, this VAT will create a very big impact in the lifes of the masses because if they dont have, then they will steal,

before now, MTN to MTN text message used to cost N7. now it has gone to N8. please do the maths, 5% additional on 7 can never yield 8. in fact, it is 7.35. think of the multiplier effect of this small change and see why MTN is sneering at us.

some smart alecs are certainly going to profit from this Gov`t nonsense, especially those that collect vat and do not pay back.

one area this VAt thing will have crushing effect is in Import Duty payment to Government. you will soon find out that VAT will far outstrip the Duty element on most shipment into Nigeria. VAT will drive more people away from Nigerian ports. mark my word.

Limca has jumped from 30 naira to 40 naira. lol

that stings!

well nigeria had the lowest vat rate in ecowas apparently and this was seen as unfair considering some had vat in the region of 15%. so in line with ecowas they increased it to 10%. Now hopefully the citizens will be more demanding! you should be able to shout/put pressure on your local government chairmen ' they must provide us with better servies afterall we are paying for it!!

official:

Limca has jumped from 30 naira to 40 naira. lol

Even Gala is now sold for N50, formerly N40, T-fare has increased by about 20%. yet there's no increase in wages.

really sad
and i think the ugliest part of all this is the fact that the new VAT will not reflect
our social amenities will remain at the lowest ebb

it is just unfortunate!

i feel like crying.very soon pure water will soonmove from #5 to #10 

my people na wa for our govt.o the VAT increase only shows one thing, and that is our government are insensitive to the plight of the masses if not in a country where over 40% of our active and able population are not employed there by reducing the probable national income without any serious attempt to address the issue, don't forget the average per capital income of a Nigerian is less than $1 and our govt.still has the audacity to hike VAT rate, well, its only God that can save the masses from these people, but i don't blame them since they get what ever they want free, abi?

that one na small, they increased fuel price, and on every litre of fuel you buy u pay VAT, thats like a double combo. Fuel is like the lifeline of the economy (i mean it controls the price of virtually all consumer commodities viz how fast money leaves you pocket). the chain starts with transportation and is endless till you have nothing left, as there is no power supply, the GSM networks are burning fuel to give their service, common the past administration was purely DEMONIC

i believe you @ryu1 the past administration was real demonic, they increaease fuel price as if its there fathers heritage, they deserve notin but presecution, but we still have a lot of them in the present administration, they are still very much here, to steal and destroy, not until we stand up to fight for our right notin good will be done, we will only shout, complain just like we have been doing and till over another 8yrs of bondage come and goooo

Ha ha ha Ha ha ha, they know what they are doing, and they are well trained in it, lol, lets just pray they dont sell us masses to Dangote or MTN within the nest 2 years, BECOS, if you plant a yam, it cannot produce peper, na goat dey born goat, fowl dey born fowl, if you understand what i mean, the present administration is Obasanjo's in disguiseeeee heyooooooooooooooooooooo,

ehanphatomian

the fg hhave said it will  affect only non oil sector.despite that we hope Yaradua will adress the issue.The prob is not really the vat but the fact at the former rate 5% ppl are gasping and things r generally bad,infrastructurewise etc

I don't understand what this nation is turning into!Someone just wakes up one morning and decides to increase the VAT rate.This things are not done like that now it is the poor masses and the civil Servants who are going to suffer.80% of These rich guys out there spend tax free money.This country has nothing in stock for it's citizens.

You can not COMPARE the two situatons at all.  Do you know how many unscrupolous levies citizens pay as it is. Some under the guise of local govt with just a flourescent vest to show for it demand you pay fees simply because you are in their vicinity. Then you have MOE bills sent to your house when NOONE has come to collect ur trassh in years. My office still recieves Nitel bills every month for calls never made.

So don't talk abt tax.  

Do you know how easy it is for some to just add 10% tax aand the cash never gets to the official hands. Do you know how much 'egunje' corporations pay outside VAT just to simply operate as a business.

Another example is tenement rates even when you bought the land and paid for it you still pay tenement rate when you build on it, And if you happen to have tenants that businesses the same officials will charge your tenants each for the same rate they charged you as the Landlord.

Even personal income tax is not across board, all that tax where does it go to?

Hospitals are still underfunded and minimum wage is still 7.500 (yet some earn less)
Roads are in dissarray even the New Lagos project is funded by foreign loans

Some of our brethren dat stay abroad will never appreciate the plight of their fellows over here at home. U talk abt UK, what is d minimum wage in Uk? for ur information in naija some family owners live on an income of less than N10,000, i mean less than 39 pounds a month. How will u consider removing 10% out of this amount. Apart from some of the community contributions for refuse disposal, maintenance of sources of water and others. And in times like this, i mean the rainy season, some communities seek for contribution to clear up drainages and some water ways. Mind u all dis is the work of the government that collects 10% as VAT. So after all dis deductions u will be left with just a little money to run ur family for the rest of the month. If i may ask, obomi when have u ever paid for extra things after paying tax? I mean paying to the government and ur community for one same service in UK? When people are complaining about what they are seeing, u guys dat do not have an idea of what is going on here should please mind ur words cos some of ur comments are annoying to hear. The life u are living over there is an opposite of what is happening in many parts of naija.

These are the legacies of Obasanjo as he left office. Interestingly, many of them he implemented some days to handover. First it w as the fuel strike, now VAT. I believe we've not seen the last of them all. dat MAN!!!, , is a president we should never have had

And to even imagine that MTN started the implementation first and foremost
na wa
Have you checked your call credit balance of late

VAT on Electricity bills too. Ya''aaay, My area aint seen power supply for months, what's the world turning to?

Na who talk say make dem spend billions on campaign? The only way to recuperate na to make the voters suffer eh? All of una wey waste una time go vote don dey enjoy the dividends of democracy now abi?

Unfortunately, the rich don't vote

Election, count me out. Revolution, count me in. Who wants to lead? Wake up guys and get back to work, nothing's gonna happen, next thing you hear, is BREATHING TAX (pay tax for oxygen okay, and i'm sure everyone will). I'm so proud to be Nigerian.

Sista E, Trust MTN, the ever patriotic service provider. They are even more Nigerian than we Nigerian??


Don't they wish.


Thats the thing with owning you own Business. It is at such times that you can maximize your profit with a good excuse. You'll still be paying the same for human labour and charging more for the same service. The catch is minimizing your running cost. MTN can easily increase their profit by 10% or more in the first week, while Nigerians r unaware of the true implications of the VAT increase and yet to adjust. Now they wouldn't wana loose all that money, would they?

How much is the price of stout now?

Those of us that like expensive beer will not bother

Most of us willl soon start looking for free beer or be sober

@musbaunow

you will never change. So in your mind, average Nigerian per capita income is less than $1? Hmmm. I pity your economics teacher. First, there is nothing like average per capita income. Per Capita Income is already an average. Oya, take your pencil and paper. Time for MTH 101:
in 2006, GDP= $180 billion
in 2006, population= 130 million

$180billion/130million
= $1,385/person
also known as $1,385 per capita.

Even CIA that is always condemning Nigeria, they agree that our per capita income is about $1,400. Which one you dey?

@musbaunow

there is no country in this world where the per capita income is less than $1.

People just don't want to pay tax. If Nigerians were declaring income tax all this extra taxes will not arise.

The issue is not to complain about the VAT. The issue is to complain about VAT being paid on non-value added products.
When a raw material such as ankara material is bought by a designer and made into a dress, value has been added to to that material so the price will change and so government charges value added tax on that income of the designer resulting from adding value to the raw material.

But why should there be value added tax on products like pure water when the water is not bought by the company in the first place, and it is not produced into any new product? Why should Nigeria charge value added tax on a versace dress in which the value was not added in Nigeria? Why should there be value added tax on phone calls? What is the initial product of the phone call, and what value is then added? And the companies do not really complain as they pass on the burden of the tax straight to the consumer, even going one step further to round up the figures and make some extra profit for themselves.

It is okay to say VAT, but only on vatable goods. Am sure they are collecting VAT on flight tickets. Are the planes built in Nigeria? It is even products like Garri, of which value is added by processing from cassava and foods that should be VATted.
Very soon, they will ask me to pay VAT for admiring a beautiful woman.

Anyway, pay VAT where VAT is payable. But do not give to Caesar what does not belong to Caesar.

I guess that was why Celtel has been sending text messages about review of tariffs. really funny

Don't they think that people's wages also should be reviewed

denex:

@musbaunow

you will never change. So in your mind, average Nigerian per capita income is less than $1? Hmmm. I pity your economics teacher. First, there is nothing like average per capita income. Per Capita Income is already an average. Oya, take your pencil and paper. Time for MTH 101:
in 2006, GDP= $180 billion
in 2006, population= 130 million

$180billion/130million
= $1,385/person
also known as $1,385 per capita.

Even CIA that is always condemning Nigeria, they agree that our per capita income is about $1,400. Which one you dey?

@musbaunow

there is no country in this world where the per capita income is less than $1.

People just don't want to pay tax. If Nigerians were declaring income tax all this extra taxes will not arise.

The issue is not to complain about the VAT. The issue is to complain about VAT being paid on non-value added products.
When a raw material such as ankara material is bought by a designer and made into a dress, value has been added to to that material so the price will change and so government charges value added tax on that income of the designer resulting from adding value to the raw material.

But why should there be value added tax on products like pure water when the water is not bought by the company in the first place, and it is not produced into any new product? Why should Nigeria charge value added tax on a versace dress in which the value was not added in Nigeria? Why should there be value added tax on phone calls? What is the initial product of the phone call, and what value is then added? And the companies do not really complain as they pass on the burden of the tax straight to the consumer, even going one step further to round up the figures and make some extra profit for themselves.

It is okay to say VAT, but only on vatable goods. Am sure they are collecting VAT on flight tickets. Are the planes built in Nigeria? It is even products like Garri, of which value is added by processing from cassava and foods that should be VATted.
Very soon, they will ask me to pay VAT for admiring a beautiful woman.

Anyway, pay VAT where VAT is payable. But do not give to Caesar what does not belong to Caesar.

eh mm teacher no teach nonsense here abeg!!!


$1 per capita income are calculated on daily basis and many Nigerian families live on less than that

and i don't know where you got your economic ideas from , because in Europe the only place you get tax-free products are in the departure halls of international airports, anything else you acquire outside there has a 16% vat on it especially in Spain where i live

mind you, VAT is to go up to 15% by 2009

This shows that Govt is completely insensitive to the plight of Nigerian.
The more we hope for better days, the worse the situation becomes. May God help us.

fu*ck them all! they steal our tax and vat and use it for private gain like campain and buying flashy things.i will never work for government and am never goin2 pay tax.and this idiot mtn they are actually reaping us

I wonder how insensitive this our telecom providers are. I just have a feeling that our former government has sold us out to money mongers. But they still take the pride of bringing telecom to naija.

this vat thing was proposed a long time ago, they had actually been talking about it for a while now, people just didnt listen then. the aim is to achieve tariff uniformity across the W/African sub region to further the integration of the economies of member states. whether that is in Nigeria's interest or not is another matter entirely.

I don't think the Nat'l Assembly has ratified it, as long as they haven't then its reversible, this one is not like fuel price that they can play with anyhow