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Nairaland Forum / Nairaland / General / Politics / Lagos Chairmen Demands 50-50 Vat Sharing Formula (401 Views)
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Lagos Chairmen Demands 50-50 Vat Sharing Formula by bolaji1023(f): 7:43am On Sep 09, 2021 |
T
LG chairmen kick
against Sanwo-
Olu’s 75-25 VAT
sharing formula,
demand 50-50
The conference 57 secretary demanded a
50-50 sharing formula, contrary to the 75-25
proposed in the bill in favour of the state
government.
NEWS AGENCY OF NIGERIA • SEPTEMBER 9,
2021
Lagos State governor, Babajide-Sanwo-Olu
and Rivers State governor, Nyesom Wike
he Conference of 57 Local
Governments and Local Council
Development Areas (LCDAs) in
Lagos has requested equal sharing
formula with the state in the
proposed value-added tax (VAT) bill
now before the Lagos House of
Assembly.
The secretary of the Conference 57
and chairman of Odi-Olowo/Ojuwoye
LCDA, Abdulrasak Ajala, made the
request at a one-day public hearing
on the bill organised by the Lagos
Assembly on Wednesday.
The parliament is considering a tax
bill titled ‘A Bill for a Law to impose
and charge Value Added Tax (VAT)
on certain foods and services,
provided for the administration of
the tax and for related matters’,
following Rivers’ example.
Mr Ajala explained that for the
councils to pursue meaningful
development, they required a better
sharing formula for its members in
the proposed VAT law.
The conference 57 secretary
demanded a 50-50 sharing formula,
contrary to the 75-25 proposed in the
bill in favour of the state
government.
Being the closest to the grassroots,
Mr Ajala explained that the councils,
which also host companies, should
benefit from a better share than the
25 per cent in the bill.
The council chairman commended
the legislators for the bill, as well as
the synergy between the executive
and the legislature.
“On the distribution of revenue, you
will agree with me value-added tax is
on consumption and production, and
all these economic activities are
domiciled in our respective
communities. In addition, local
governments, being the closest to the
grassroots, need more revenues given
the enormity of the responsibilities
the Constitution confers on us,” he
noted. “Hence, the 25 per cent in the
bill is grossly inadequate for local
governments to execute all the
promises we made to our people; and
of course all our electoral promises.”
Mr Ajala further stated, “This is the
reason we are making a passionate
appeal, on behalf of Conference 57,
that we should raise the bar higher,
from 25 per cent to 50 per cent.”
Contributing, Michael Ade,
representing the Lagos Tax Justice
and Governance, commended the
lawmakers and the state government
for having the political will to imitate
Rivers’ government and parliament.
Also commenting, the attorney
general and commissioner for justice,
Moyosere Onigbanjo, declared that
the judgment on the VAT law was not
valid only in Rivers, but any state in
the country stood to benefit from the
judgment.
According to the attorney-general,
the National Assembly does not have
powers on VAT.
The House Committee on Finance
chairman Rotimi Olowo, insisted that
it would make no sense if all monies
accruable to Lagos was taken by the
federal government.
Mr Olowo argued that given the
pressures on the state governments
in terms of infrastructure
development, the proposed law on
VAT in the state would bring about
development.
The Speaker of the parliament,
Mudashiru Obasa, assured
stakeholders at the public hearing
that their contribution were as vital
as the bill and would be included in
the proposed bill before its passage. |
Re: Lagos Chairmen Demands 50-50 Vat Sharing Formula by bolaji1023(f): 7:46am On Sep 09, 2021 |
Re: Lagos Chairmen Demands 50-50 Vat Sharing Formula by seunmsg(m): 7:51am On Sep 09, 2021 |
The 75-25 proposed by the governor is too skewed to the state government. I won’t support 50-50 because so much burden is on the state government. A 60-40 arrangement should be fair enough to all parties. We are looking at between N500-N900billion annually so that’s a lot of money to play with. Btw, will states not make any contribution at all to FG from VAT revenue collected? FG gets 15% from the current system, will they be shut out completely? 1 Like |
Re: Lagos Chairmen Demands 50-50 Vat Sharing Formula by Biodun556(m): 7:53am On Sep 09, 2021 |
There can never be this kind of disagreement in Lagos. |
(1) (Reply)
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