Kobojunkie:


YOu mean there are those who are not Fasola Zombies already?? No make the Fashola-Patrol hear that one from you ooo!!!Roflmao!!

Its the flower oh ! I don't know what we got to do with flower,when someone is advertising soap for an hungry man ,its not funny.

Many Nairalanders complain about the "north" sucking the south dry, well, this is a first step to real federalism, revenues being generated locally through tax collection.

The Oil won’t be there forever, generating revenue at the grass-roots must start somewhere. [font=Lucida Sans Unicode][/font]

So we should suck ourselves dry in the process, where is the money being taxed coming from? Oil my friend.
Nobody is saying he or she does not want to be taxed afterall, we all supported the tax drive, but when taxation is turning into extortion alarm bells begin to ring.

Current Governor of Lagos State, Barrister Raji Fashola,  has done more to improve Lagos State than all of his last three predecessors combined, and in a fair presidential election, Fashola would likely win by wide margins across the nation, since the evidence of his far-sightedness and productivity is visible all over metropolitan Lagos, Nigeria's commercial capital and social confluence of her disparate tribal groups and religions.

This recent declaration by Governor Fashola's administration,  to tax "luxury cars" at astronomical rates that in many instances would exceed the current market value of the vehicles so levied, is baffling to say the least, given the inherent susceptibility of such legislation to rampant abuse and profiteering by corrupt government officials, who in Nigeria outnumber honest ones by an easy 999 to one ratio.  

The limitations of Lagos State's proposed luxury vehicle tax regime are not spelled out, but even if explicated in wordy legal dissertations, would still be disregarded with impunity by those empowered by the state to harass motorists on the street.    Allowing the summary taxation of vehicles "captured" on Lagos State roads by teams of government-backed thugs or policemen will INSTANTLY create a climate of TERROR in that state, that will be capitalized upon by kidnappers, car-jackers and highway bandits, who will ALL pose as "Luxury Car Tax Task Force" operatives, to abduct, murder and rob at will.

The definition of what constitutes a "luxury car" is purely subjective and  very open to deliberate misinterpretation for the purpose of criminal extortion by policemen and the throng of hired "repo men" that will quickly form to give muscle to such a mad law.   Few who know about Nigeria would disagree with the conventional wisdom that driving around in a Rolls Royce Silver Spur or Ferrari 430 in Lagos is just asking for trouble, since most pedestrians and policemen along the streets cruised by such quarter-$million cars live pathetic hand-to-mouth existences of quiet desperation, and would have no compunction about brutally enforcing repressive laws that tax ANYONE who drives ANY car, till they are broke from paying, or dead from punishment.  

The passage of such ridiculous and arbitrary tax regimes will have disastrous repercussions on commerce, by facilitating the victimization of all who so much as transit through Lagos State in a half-way decent car, while making a public mockery of the most basic civil right to free movement for ALL vehicle drivers, in any democratic setting, regardless of  their car's value.

Raji Fashola Senior.Advocate of Nigeria, should act in a timely fashion to disavow endorsement or association with this comical plan to declare open hunting season on ALL motorists found guilty of operating an air-conditioned "luxury" car in Lagos State, and His Excellency would do well to administer the coup-de-grace by summoning the authors of this retrogressive Soviet-era inspired tax law, in order to request their immediate resignations and lifetime banishments from Lagos State.

I don't understand why people think Nigerians dont pay tax. For goodness sakes, we do!

Every one working in the formal sector in Nigeria is taxed monthly automatically from his salary. Everyone in the informal sector (artisians, traders, etc) pays one tax or the other to the local government.

Goevernment should tell us what they do with our money! If the Lagos State government can give us monthly breakdown of how they spend the tax we ALREADY pay, then maybe they can think of how to collect more.

Emperoh:

I don't really think we read this article well. . . .  .or maybe i too might be wrong
This articule says that a car u drive will be used to independently access how much u would be earning and thereof, charge you for you PIT.
Whereas u don't have a job, they have nothing to charge you of. . . .what i don't seem to realise is how they know who is employed and who is not.
How about Agberos and touts? Also this is mostly for the informal sector whereby there is no particular means of determining how much u make
Like traders, artisans, technicians who don't seem to pay tax but live well,(hence buying a car). . . .not a time to panick yet
Especially if u are on a paid employment and your coy remits the PIT of staff under its employ.

But sha, if you be artisan, u fit claim say u no get work nah!!
Unless ay u don already rush buy motor!!!!!

If i am wrong, i stand to be corrected pls.

thank goodness o, it seems someone else here read and understood the post. . .

proudly9ja:

I don't understand why people think Nigerians dont pay tax. For goodness sakes, we do!

Every one working in the formal sector in Nigeria is taxed monthly automatically from his salary. Everyone in the informal sector (artisians, traders, etc) pays one tax or the other to the local government.

Goevernment should tell us what they do with our money! If the Lagos State government can give us monthly breakdown of how they spend the tax we ALREADY pay, then maybe they can think of how to collect more.

THANKS A LOT



Please let for once stop comparing paying taxes in develop countries to Nigeria.
why will you want to pay tax when there is absolutely nothing to benefit from the government. NO GOOD ROADS, NO ELECTRICITY, NO GOOD HEALTH FACILITY,NO CLEAN PIPE BORNE WATER, EDUCATION SECTOR ON STRIKE,, UNEMPLOYMENT ETC.
This policy should be flushed down the drain.

i hope this governor that wants to milk everybody dry will not ask my grandfather to pay tax for his Volkswagen Beatles

@Emperoh, this one is for you and your interpretation of the article.

Emperoh:

[color=#550000]I don't really think we read this article well. . . . .or maybe i too might be wrong
This articule says that a car u drive will be used to independently access how much u would be earning and thereof, charge you for you PIT.
Whereas u don't have a job, they have nothing to charge you of. . . .what i don't seem to realise is how they know who is employed and who is not.

So, If I were to have purchased said car for $1, I would pay taxes on $1 Or on my menial income as a typist in some government office?

Emperoh:

How about Agberos and touts? Also this is mostly for the informal sector whereby there is no particular means of determining how much u make
Like traders, artisans, technicians who don't seem to pay tax but live well,(hence buying a car). . . .not a time to panick yet

They don’t pay taxes?  How you know this?

Emperoh:

Especially if u are on a paid employment and your coy remits the PIT of staff under its employ.

But sha, if you be artisan, u fit claim say u no get work nah!!
Unless ay u don already rush buy motor!!!!!

If i am wrong, i stand to be corrected pls.

What of people who saved most of their lives to purchase the car? I mean it is not hard to imagine a typist using his 20 year savings to purchase a luxury car so he/she can feel good of self. Do you then tax that typist based on the car driven or how much he/she actually makes as a typist?

thanks Kshow1

You see, i have come to understand that whenever an average Nigerian earns a little above 200K, the or she thinks he or she is made and all of a sudden every effort of the govt. to extort money from citizens with cover ups such as this car tax stuff is welcome by them.
My Message to them is: Wake up and see big pictures, see things with objectivity and not emotions. By emotions i mean: (when i have money then nothing is expensive, but when i am broke everything is expensive)

Fashola is gradually alienating people. His policies and goons have chased many companies to Ota. He had better watch it.

My opinion is that this policy will be successful if it focuses people's minds on the requirement to pay taxes.  As a minimum, your taxes is a prerequisite for your citizenship and for instance your right to be defended by the military if Cameroon decides to invade and take you and your family away as slaves.  You therefore should not have a right to not withhold your taxes as it is the pathway to anarchy.  I don't think anyone would want that.

In the UK, the Revenue Office can demand access to your personal financial transactions for monitoring and it can ask for a comprehensive Tax Audit even if you submit tax statements regularly.  This audit is a shit-pooping experience, I tell ye.

It is therefore because the Nigerian Govt. does not have the technological means to effectively monitor tax compliance (and we all should recognize that tax avoidance is rife) that it appears to be going after the next visible lowest common denominator - obvious signs of wealth.  As the Tax Partner has said, the letter is poorly worded but cannot replace the law of the land.  And, even though it may be a crude means to ask for a tax audit on you, if your affairs are ok, nothing to fear.  Trouble is, most people's tax affairs are not ok then be advised to keep a low profile.

Kobojunkie:

@Emperoh, this one is for you and your interpretation of the article.


So, If I were to have purchased said car for $1, I would pay taxes on $1 Or on my menial income as a typist in some government office?

They don’t pay taxes?  How you know this?

What of people who saved most of their lives to purchase the car? I mean it is not hard to imagine a typist using his 20 year savings to purchase a luxury car so he/she can feel good of self. Do you then tax that typist based on the car driven or how much he/she actually makes as a typist?

@kobojunkie

this is simply a crude method of getting the people to the tax office. Then they will have to declare their earnings there. Crude as it is what i'm able to gather from the initial post is that it is somewhat legal.

hah. Lagosians can be a pansy bunch. I pay millions yearly in taxes to the FGN. In return i am given an average of 30 minutes of power daily, no water ( i rely on borehole water) and shabby roads. With such a silly imbalance, i'd like to see anyone stop me on the road and decide i have to pay taxes to the FGN on my car, even though all VATs and customs duties have been paid to the government on purchase.

I'll see them in court.

netotse:

@kobojunkie

this is simply a crude method of getting the people to the tax office. Then they will have to declare their earnings there. Crude as it is what i'm able to gather from the initial post is that it is somewhat legal.

Simply a crude method? It is more than crude. I think the government should pursue other ways, not this way now. I mean I am for taxing everyone but does going after those with "Luxury" cars really make for good approach? And who decides the definition of LUXURY in this case?? If I purchase a car for $1 from someone who was wanting to get of it, do I still own a luxury car or does the price of the purchase matter as well? And like it is made clear in the article, most all those cars already have necessary taxes paid on them, so why come back to taxing cars after all has been paid and cleared??

yep. . .but i figure(i'm not sure since i dont work there) that what'll happen when u get there is that u fill out a form and declare your income(which they'll tax you on. . .) i thnk the whole luxury car thing is just a ploy to scare them to the tax office. . .the lagos state govt hopefully isnt that stupid!

Emperoh:

I don't really think we read this article well. . . . .or maybe i too might be wrong
This articule says that a car u drive will be used to independently access how much u would be earning and thereof, charge you for you PIT.
Whereas u don't have a job, they have nothing to charge you of. . . .what i don't seem to realise is how they know who is employed and who is not.
How about Agberos and touts? Also this is mostly for the informal sector whereby there is no particular means of determining how much u make
Like traders, artisans, technicians who don't seem to pay tax but live well,(hence buying a car). . . .not a time to panick yet
Especially if u are on a paid employment and your coy remits the PIT of staff under its employ.

But sha, if you be artisan, u fit claim say u no get work nah!!
Unless ay u don already rush buy motor!!!!!

If i am wrong, i stand to be corrected pls.

Just what i was thinking,

why cant LASG focus on sales taxes  on cars in Lagos? What if my car was registered in Kano by my sister? so who is going to be assessed? Hope that LASG knows that it's the on exclusive list of FG to impose some taxes  like import taxes,  car registration fees and the rest.

Let's not get too het up about this crude approach because, in my opinion, it is a consequence of someone trying to do a proper job for once but without the correct tools.

If you read the article, the original letter seems to have been an invitation to clarify tax position in years 2006-2008.  As has been explained many times above, the "luxury car" aspect merely opened up the road for such a tax assessment.  As the person did not comply, they can then unilaterally tax assess her but this is still subject to legal challenge especially if she can prove those tax affairs are in order.



Part of the letter dated September 11, 2009 states: “Ref: Personal Income Tax Matters. Demand Notice on Liabilities for years 2006-2008.
“Further to our earlier letter dated 10th June, 2009 duly served on you on 24th of June, 2009 in respect of your new car (Toyota Rav 4 Jeep) with registration number …, your failure to respond to the above letter within the statutory time limit has since rendered this assessment notice final and conclusive by virtue of section 66 of Personal Income Tax Act Cap 8 LFN 2004.

Kobojunkie:

Simply a crude method? It is more than crude. I think the government should pursue other ways, not this way now. I mean I am for taxing everyone but does going after those with "Luxury" cars really make for good approach? And who decides the definition of LUXURY in this case?? If I purchase a car for $1 from someone who was wanting to get of it, do I still own a luxury car or does the price of the purchase matter as well? And like it is made clear in the article, most all those cars already have necessary taxes paid on them, so why come back to taxing cars after all has been paid and cleared??

Paying taxes hurts, but not paying them hurts even more in the long run.

Lets just hope that the tax revenue generated is used accordingly as promised.

It's funny how everyone agreeing with this mess is outside the country {UK to be precise}.

Instead of taxing these so called luxury vehicles, why don't they just levy a road tax on everyone? I think that is something desperately needed. The raised revenue will go a long toward raising revenue to fix the roads and other things. The idea of taxing just luxury vehicles is somewhat discriminatory. I think the road tax can be levied the same way it is here. Cars of a certain litre pay more the others. Also the tax might reduce the number of cars on the road.

Lagosians are overtaxed already as it is and now Fashola has brought about this luxury car tax regime?

Even the aboki's who buy water from privately owned boreholes and resell now buy ticket from Local Government Officials.

Very soon, we'll be paying tax on the air we breathe.

Arrant Nonsense!

CANT PEOPLE READ FOR GOD'S SAKE? THE POST SAID THE CAR WAS USED TO ASCERTAIN THE INCOME OF THE OWNER, THE POST DIDN'T SAY THEY WANT TO BE TAXING "EVERY" CAR.

UK tax as a percentage of GDP is about 35%, Nigeria's tax as a percentage of GDP is about 6%

Nigeria's GDP is about $170 billion


You do the maths.

Tstark:

It's funny how everyone agreeing with this mess is outside the country {UK to be precise}.

honeric01:

CANT PEOPLE READ FOR GOD'S SAKE? THE POST SAID THE CAR WAS USED TO ASCERTAIN THE INCOME OF THE OWNER, THE POST DIDN'T SAY THEY WANT TO BE TAXING "EVERY" CAR.

How do you ascertain the income of a car owner in that way please? If I had a car transfered to me by an aunt or uncle, how does that reveal my income in anyway?

Kobojunkie:

How do you ascertain the income of a car owner in that way please? If I had a car transfered to me by an aunt or uncle, how does that reveal my income in anyway?

Guy, i don't want to argue anyhow, if you read the post well, you would understand why they came up with that. the main objective of why this was done was because they knew people won't come and declare their income, so they decided to use people's car to lure them to the tax office, with them coming to the tax office, they can then be made to declare their income. do you understand now?

honeric01:

Guy, i don't want to argue anyhow, if you read the post well, you would understand why they came up with that. the main objective of why this was done was because they knew people won't come and declare their income, so they decided to use people's car to lure them to the tax office, with them coming to the tax office, they can then be made to declare their income. do you understand now?

How do you make someone who shows up at the IRS complaining about being taxed for driving a car to declare his income? I am not arguing anything with you. I simply asked you a direct question following your post on your understanding of the topic. How do you ascertain the income of a car owner in that way please? If I had a car transfered to me by an aunt or uncle, how does that reveal my income in anyway?

The concept of paying taxes is foreign to a lot of Nigerians.

Kobojunkie:

How do you make someone who shows up at the IRS complaining about being taxed for driving a car to declare his income? I am not arguing anything with you. I simply asked you a direct question following your post on your understanding of the topic. How do you ascertain the income of a car owner in that way please? If I had a car transfered to me by an aunt or uncle, how does that reveal my income in anyway?

I feel like laughing at this, how do you make someone declare his or her income you mean a tax officer wouldn't know how to do that facing his or her client one on one in the IRS office

lol this is funny,
I can understand why so many of us are suprised,the issue of tax is foreign to us as someone clearly stated above,no what the Lag Govt has done is realy clever, you are forced to declare ur earnings or source of income one way or the other weather you lie to reduce it or not you will have to pay tax, now the big payers would now be the big companies who tax thier staff heavily and dont remit the correct amount back to Govt, so guys chil, this has little or no effects on any one person, if you are gainfuly employed all you have to do is produced your pay slip and you are on PAYE, if you own ur own Biz then you are forced to register with the accountants and declear you income in the right way by the book and then you are forced to pay tax,Now if you dont work, and have a car you have to prove how you came about it,trust me it aint too hard to find out plus you already pay tax on ur car, thats the licence you got to buy at the licencing office yearly so your car is not subject to impoundment as most of you think,they are just trying to use something we got here in the Uk but not speeling the small prints out, all you have to do is go read the rule of taxation in Nigeria and you will make your own deductions.