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States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude (9940 Views)

VAT Collection: Appeal Court Orders Rivers, Lagos To Maintain Status Quo / FG Vs States VAT War - Cutting Through The Noise ~ Tosin Adeoti / Lagos, Rivers Begin VAT Collection, FG, North Disagree (2) (3) (4)

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States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Mynd44: 9:06am On Sep 12, 2021
Unpopular Opinion: Lagos & Rivers VAT collection laws will not solve the injustice/problem that we seek to eliminate, but may create more problems, complexities & further complicate the ease of doing business. VAT problem is a distribution issue, not a collection issue. Thread

What do I mean? VAT as currently administered in Nigeria is collected solely by FIRS & distributed amongst the 3tiers - 15% FG, 50% states & 35% to LGAs. [/b]Now out of total VAT generated, half is generated from VAT on foreign transactions, while about 65% of local is from Lagos.

Now[b] some of Lagos’ VAT are from transactions nationwide but reported by their Lagos HQs. The basis of sharing among states is only 20% based on contribution, 50% equality & 30% population- wherein lies injustice. because states like Kano may receive more regardless of contribution


Now, the solution is to prioritize contribution as the major or only basis of distribution. This can be achieved irrespective of who collects. Eg FIRS can collect but distribute based on contribution, such that 80% of a state’s generated VAT goes to that state, & 20% to their LGA

While VAT on foreign transactions get shared equally among states. Though the constitution is currently silent on who can collect VAT & Rivers/Lagos laws are effectively the only laws in Nigeria that codifies a collector of VAT, I do not think the state laws are well thought out


Because it does not properly define the confusion that will arise from inter-state transactions, or e-commerce transactions where goods are sold in lagos but consumed in Yola, with both states having different rates, or the difference in Lagos’ 6% & FG’s 7.5% etc.

It also means that businesses with national coverage will now have to deal with multiple agencies for VAT (possibly as high as 37 for companies like telcos), as against one. And this ofcourse further compounds ease of doing business.

However, the good thing about what Rivers & Lagos are doing is that it is forcing us to have conversations on fiscal restructuring (VAT logic also applies to oil), constitutional gaps & need for amendment. However, the manner in which it is being done is a bit too hasty & tacky.

This is because as usual, it has become an emotional debate underpinned on North/South dichotomy rather than rigorous workable analysis that factors our realities. As I’ve always said, regional/tribal sensationalism is the biggest obstacle to socioeconomic progress in Nigeria
https://threadreaderapp.com/thread/1436608325437755399.html

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Mynd44: 9:09am On Sep 12, 2021
Not my opinion, just an alternate arguement

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by absoluteSuccess: 9:11am On Sep 12, 2021
It's a way to start, all the answers are not in one place.

With problems comes solutions.

Never a "static moment" of the grand standing "status quo" ever again.

Now, the statues are falling.

25 Likes 1 Share

Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Ever8090: 9:12am On Sep 12, 2021
No matter who collects vat, it will still end up in politicians pocket ..but just as the guy above me just said, it's a way to start, a very quick road to restructuring which is the right way to go...

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by kingemaker(m): 9:13am On Sep 12, 2021
VAT should be scrapped. Sales tax should then be introduced by each state. Easy as ABC.

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by NairaMaster1(m): 9:13am On Sep 12, 2021
We have heard you Sir. But let's start from somewhere.

At least injustice like destroying beer in Kano and enjoying the VAT on beer consumed in the south will be taken care of.

It's a quiet REVOLUTION.

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Serenework: 9:14am On Sep 12, 2021
sad
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Ibkhaleel001: 9:14am On Sep 12, 2021
THE SPAT OVER VAT: THE WRANGLING BETWEEN THIEVES AND CONFUSED VICTIMS
No single person from the north has written anything of practical import concerning the VAT battle between Southern states and Northern states.
All we have are discordant exclamations and mundane tirades of what is VAT and its history in Nigeria. What is to be done is entirely missing from the misdirected Northern narrative.

It is clear that after systematically shifting all development and productive factors to the South, the North is at the mercy of the South. While the North has the majority in consumer population who are the final bearer of the burden of VAT, the South has taken over the manufacture and other VATable services like import and export. It is only natural for the South to insist on states to retain VAT money which in reality both the Southern and Northern consumers paid for. The Northern leaders are armed and confused and their reactionary pseudointellectuals have nothing rational for attenuation of the danger threatening to further deflate the Northern economy interest. Northern traders and their goods were burnt and chased out of the South withing reciprocal response from the North. Southern terrorist received trillions as amnesty, but Northern terrorists were denied a farthing. Northern herders are denied pasture in the South in the name of a new fangled policy of ban on open grazing, while Southern drug dealers, abductors of children, gun suppliers, substandard and over prized goods retailers are having a field day in the North. And now they want receive all the VAT revenue of which in reality is paid for by all citizens across the country, besides media and physical aggression in the bid to wrest political power permanently mindless of democratic norms. What shall we say about the frontline VAT issue?

The South has masked the true nature of VAT and claimed its benefit to themselves. They highlight the collection centre, mainly the Southern states, and eclipse the source, the individual consumers all over the country. Under this dicey situation the North has two options and it must be ready to stand up to blackmail and threats by the South for whichever option they choose to go by.
First, the North should either make VAT collectable at the sources of consumers based on state of origin or;
The North should think outside of the box and change the battle field entirely. If the South insists on VAT being shared based on collection centres, the North can take an entirely a different course of action to neutralise the grasping effectiveness of the collection centres. Under the reality of Southern leaders( especially Obasanjo in his tenure) induced collapse of manufacturing industries and lack of ports to charge for import and export, the North should insist on turning their region into a global free trade zone that will enable them to contract trade, import and export, with every nation of the world without restrictions in the name of protecting Nigerian manufacturers and service providers. This will definitely free the North from the central government's imposed economic blockade that left the North with no option beyond buying substandard and counterfeited goods at hyperinflation prices. This will certainly jigger the South as the VAT theft is disturbing the North at present. To this, the North should target heavy taxes and levies over Southern goods and traders to economically rid its markets from the constriction of Southern economic marauding. International traders with genuine and affordable products, to be marketed and sold by Northerners themselves in partnership with the rest of the world, are to be invited. If the South adopts The Prince as their guide book, the North must seek refuge in the Art of War and Forty Eight Laws of power!
However, I am aware these suggestions of courses of action may meet with impediments from within. The North is bereft of leaders with the moral muscle and political will to put through with anything the Southern leaders are not pleased with. Since the death of Sardauna, it has been one retreat after the other and the South has been capitalising on that. I am equally aware that the Northern leaders adopt their give and give attitude towards the South because they have been blackmailed. Like the Southern leaders, they have looted and stashed away billions; but unlike the Southern leaders, the Northern leaders are not in control of their booty. The banks and other financial institutions in which, and through which, leaders of both divides launder their scoop is in the total control of the Southerners. So, the fear of selective targetted exposure and personal loss renders the Northern leaders too fickle and diffident to put up a robust fight and win. Moreover, as weak and ineffectual as the Northern leaders are, they could have been forced to action were the other informed Northern classes, like the intellectuals and business class up to their mettle.
But are the intellectuals dedicated and committed enough to force courage and action down the throats of their compromised Northern leaders? This timid and fawning class has lost all ingredients that makes intellectuals what they are. They are mere reactionaries without consciousness of the collective interest of their people. They lack aim and agenda to die for. They have reduced themselves to waiting for the South to set the agenda and react sentimentally in syrupy and weak voices meant, in reality, to be heard and remain relevant in the eyes of the illiterate majority. Their reaction to this present issue of VAT pay credence to what I said. Their weak reactions contain nothing more than what VAT means, history of VAT and how VAT is shared normally, in addition to empty grammar stamped with academic titles to impress their braying uninformed howling media followers.
With this formidable impediments posed by the blackmailed and effeminate leaders and self serving grovelling quasi intellectuals, the prospect of North holding its own against Southern ruthless cold war in all sectors, is certainly slight and grim. Banking, telecommunication, export, and import, diplomacy, foreign outsourced business, power supply and other sectors, each with trillions of Naira turn ove, have already been taken over by the South. Governance and politics are now the last frontiers for the South to conquer. And we know, as recent and age old histories have confirmed,, after the final take over, which means discrimination and exclusion, explosion ensued: it is either the monopolizers or the dispossessed to launch the final solution which in either case the result will be unpalatable. Man is the victim of both his action and inaction.

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by bishop4life(m): 9:14am On Sep 12, 2021
Maybe, but what if?
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Militant30: 9:14am On Sep 12, 2021
Our southern idiots are coming out gradually to yarn nonsense.

My Rivers State has already cook the food for Southerners to benefit from but you will see some idiots trying every possible means to the good gesture.




Nonesense Artifacts.

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Sonnobax15(m): 9:14am On Sep 12, 2021
lipsrsealed
Oga we know but at least lets start from somewhere first..

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Ibkhaleel001: 9:14am On Sep 12, 2021
Lack of solid understanding of our diversity is the reason for the needless animosity and distrust everywhere. Alcohol is frowned at in the north and the noise is that revenue from alcohol collected from States that permit sales of beer should not be shared with the states of northern Nigeria. Very valid argument but we also forgot that the same north supplies the grains used in brewing alcohol oh . So las las every region is dependent on one another - we are mutual parasites! Mutually musing

4 Likes

Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Crossroad1(m): 9:15am On Sep 12, 2021
Ok
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by J2381: 9:15am On Sep 12, 2021
grin
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by dmi2052(m): 9:15am On Sep 12, 2021
U took the word outta my mouth
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Nobody: 9:15am On Sep 12, 2021
Exactly

At the end of the day , the argument on Vat is like the Sharia argument of times past. A means to get votes and quick fix ideas not to solve the actual problem

Which is both Northern and Southern states are both unproductive and very dependent on allocations from abuja, which is where the Vat money goes to.

1 Like

Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Blackdisciple(m): 9:16am On Sep 12, 2021
It wil expose alots of lazy Governors especially in the north.
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by emorse(m): 9:16am On Sep 12, 2021
Hmmm
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Onyenna(m): 9:16am On Sep 12, 2021
Ike gwuru.....

But then again, this will make other states sit up and do something about their low IGRs........
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by OutisComputers7: 9:17am On Sep 12, 2021
Lawless country. Everyone is decentralizing except Nigeria
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by mrvitalis(m): 9:17am On Sep 12, 2021
To solve this issue is simple , VAT should be paid by the consumers to the retailers not the producers

Why are we acting like it's rocket science ?

Coca cola know how much coke is sold in Lagos ...u calculate the VAT and pay Lagos

Pepsi know amount of their products sold in zamfara ... calculate it and give to zamfara

I don't know why people want to make us believe this is hard

A simple app can do this calculation from sales m distribution figures

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by DankemzI(m): 9:18am On Sep 12, 2021
mrvitalis:
To solve this issue is simple , VAT should be paid by the consumers to the retailers not the producers

Why are we acting like it's rocket science ?

Coca cola know how much coke is sold in Lagos ...u calculate the VAT and pay Lagos

Pepsi know amount of their products sold in zamfara ... calculate it and give to zamfara

I don't know why people want to make us believe this is hard

A simple app can do this calculation from sales m distribution figures

Here's the solution, you've nailed it baba.
Nigerian politicians will put square pegs in round holes!

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by COdeGenesis: 9:18am On Sep 12, 2021
Ibkhaleel001:
Lack of solid understanding of our diversity is the reason for the needless animosity and distrust everywhere. Alcohol is frowned at in the north and the noise is that revenue from alcohol collected from States that permit sales of beer should not be shared with the states of northern Nigeria. Very valid argument but we also forgot that the same north supplies the grains used in brewing alcohol oh . So las las every region is dependent on one another - we are mutual parasites! Mutually musing

No one is disputing that now. When the northerners sell their grain state government should collect VAT on the grains sold now. When southerners drink their beer state government should collect VAT on the beer people buy na. There is segregation there. At the point of selling the raw material VAT should be collected and at the point of selling the finished produce VAT should be collected.

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Jerryherd: 9:18am On Sep 12, 2021
cool


It's a good way and start towards restructuring

We can't continue to speak big big grammar over restructuring without taking steps


.

3 Likes

Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Seniorwriter(m): 9:19am On Sep 12, 2021
Interesting!
Mynd44:
Not my opinion, just an alternate arguement



@SENIORWRITER
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Militant30: 9:20am On Sep 12, 2021
Ever8090:
No matter who collects vat, it will still end up in politicians pocket ..but just as the guy above me just said, it's a way to start, a very quick road to restructuring which is the right way to go...



Let the states collect it and let it end in the their pockets and not someone who will ban alcohol and other essential products and still want to benefit from the largeese that comes from alcohol.

It's a great injustice to humanity.

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Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by AntiChristian: 9:20am On Sep 12, 2021
Exactly
Re: States VAT Collection Laws Won't Solve Injustice Problem - Bankole Akintojude by Nobody: 9:23am On Sep 12, 2021
Ibkhaleel001:
Lack of solid understanding of our diversity is the reason for the needless animosity and distrust everywhere. Alcohol is frowned at in the north and the noise is that revenue from alcohol collected from States that permit sales of beer should not be shared with the states of northern Nigeria. Very valid argument but we also forgot that the same north supplies the grains used in brewing alcohol oh . So las las every region is dependent on one another - we are mutual parasites! Mutually musing
the North is useless to this country having nothing to offer why destroy goods worth millions of naira im da name of religion abeg God erase the North for us the are troublesome

5 Likes 1 Share

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