States destroying alcoholic drinks cannot continue to enjoy Rivers VAT receipts: Wike

Mr Wike said, “states with ethically restrictive social policies with economic implications” do not deserve Rivers VAT.


States that have a penchant for destroying alcoholic beverages can no longer enjoy the dividends of Rivers state Value Added Tax (VAT), governor Nyesom Wike has said.

Speaking during a statewide broadcast after the Federal Inland Revenue Service (FIRS) failure to secure a stay-of-execution to stop Rivers from collecting VAT from businesses in the state, Mr Wike hinted his victory would affect states’ with low revenue.

Rivers State had the second-highest Internally Generated Revenue (IGR) in 2020, according to a report obtained from the National Bureau of Statistics (NBS).

Mr Wike threw a subtle jab at northern states whose insistence to be governed by Sharia law has witnessed the loss of millions from the destruction of alcoholic beverages, while these states partake in VAT from alcohol consumption from other states. 

He said he was aware that the Rivers state government decision to collect VAT would lead to setbacks for some of these Sharia-compliant states.

“Naturally, states with ethically restrictive social policies with economic implications may be adversely affected for now,” Mr Wike said.

Over the years, the Hisbah police (enforcers of Sharia law) has continued to destroy millions of bottles and cans of alcoholic drinks considered a sin in Islam.

In an interview with Punch, Kano-based distributor of alcoholic drinks, John Simon, lamented how he lost over N35 million to the Hisbah police after they destroyed thousands of his alcoholic drinks in November last year.

clarocuzioo:
Good one from Wike. Lazy parasites that won't create wealth but destroy wealth created by others, yet want to eat the dividends of what they destroyed.

Adeosun: More than half of Nigeria’s VAT comes from Lagos

Kemi Adeosun, minister for finance, says more than half of Nigeria’s value added tax (VAT) comes from Lagos state alone.

Speaking at the parley between the federal government and progressive governors forum (PGF) in Abuja on Tuesday, Adeosun said the 87 percent of Nigeria’s VAT is derived from four states and the Federal Capital Territory (FCT).

In other words, only 13 percent of Nigeria’s VAT comes from 32 other states in the federation.

According to her no country in the world with high tax compliance rate is poor, and no rich country has a low tax compliance rate.

“There is no poor country that has a high tax compliance rate, and no rich country that has a low one,” Adeosun said.

Quoting current VAT collection data across Nigeria, the minister said “55% of Nigeria’s VAT is collected in Lagos State. 20% in FCT, 6% in Rivers, 5% in Kano, 1% in Kaduna”.

“I’m hoping that one day Finance Commissioners will stop needing to come to Abuja monthly to share FAAC, because IGR (internally generated revenue) will be sufficient.”

The minister had earlier complained about the country’s abysmal tax-to-GDP ratio, which she said was at six percent, further stating it to be one of the lowest in the world.

Speaking on the topic “The Funding Nigeria Needs,” the minister says the states must do more to generate revenue from with and not solely depend on the federal government for federal allocation.

Veqtor:
Everything in this country is now boiling down to the North against the South. If the southern governors do something, the north will oppose. We don't see eye to eye and we have absolutely nothing in common. It will be great to divide this $hithole once and for all.

amc:
Meanwhile Rivers State VAT contribution is just over 10% of what Lagos state contributes yet he is the one making the most noise.

https://www.thecable.ng/adeosun-half-nigerias-vat-comes-lagos

amc:


How about we stop being tribalistic and respect each other's culture and traditions? The elites do it. Its the poor man that is hung up on region/tribe/religion.

IJOBA11:
WETIN CONCERN ABOKKI WITH LAGOS STATE INTERNAL GENERATED REVENUE

amc:


The Abokis in FCT are contributing 20% of the total VAT. Tell us how much you guys are contributing?

amc:


How about we stop being tribalistic and respect each other's culture and traditions? The elites do it. Its the poor man that is hung up on region/tribe/religion.

IJOBA11:
WETIN CONCERN ABOKKI WITH LAGOS STATE INTERNAL GENERATED REVENUE

IJOBA11:
YOU MEAN WITH KULIKULI AND FURA

Jimasun:

The culture is not stopping you from collecting VAT money abi

amc:


But the biggest contributors of VAT are not wailing unlike you lot. Empty vessels making the most noise.

amc:


Nigerians in FCT are contributing 20% of the total VAT. Tell us how much you guys are contributing?

amc:


How about we stop being tribalistic and respect each other's culture and traditions? The elites do it. Its the poor man that is hung up on region/tribe/religion.