faste:
No.

Thank you.

Modrovdeux:


And at the end of the day, many of you would pay higher for some of your favorite consumer products due to....higher VAT in some states, plus double vat collection (VAT being collected on goods sold in Lagos for distribution in Enugu..where another VAT would be collected)
Plus, it does not solve the issue of low level of taxation by state and federal governments.
Many companies have their HQ in Lagos. VAT would, under a state by state process, be higher automatically in Lagos, since many companies pay VAT on their profits, which are reported in Lag. Then the products they produce...will attract VAT in each and every state where they are sold.

At the end of the day...higher taxes in form of higher prices.

When state start collecting VAT.....,.only what is consume in Lagos will be declared and payed to the LSG...
Fried rice and chicken you bought bin Oyo state will automatically be declared and paid to the OSG.
So just relax,there will be nothing like double taxation.

honda001:
,,,

And then there is the fact that in some states , VAT would be higher than in other states

Plus, VAT on alcohol bought in Lagos and sold in Enugu...VAT WOULD be paid in both Lag and Enugu.

At any rate.....my worry is the unintended consequences, not whether state or FG charges vat.

Modrovdeux:


And then there is the fact that in some states , VAT would be higher than in other states

Plus, VAT on alcohol bought in Lagos and sold in Enugu...VAT WOULD be paid in both Lag and Enugu.

At any rate.....my worry is the unintended consequences, not whether state or FG charges vat.

All state VAT should not be equal in the first place...you expect a state like eboyi state to be equal to Abuja..,..afterall house rent is far cheaper in the former.

You don't want to be abused then stop pushing your myopic northern idea forward because it's more of an insult to the intelligent ones from the South. Some states in the South are fed up with your cheating system of governance.

Modrovdeux:


Good morning to you too, Mr wise old man, whose wisdom exceeds that of Solomon.

P.S : You don't need to be abusive. It reflects badly on you and makes you look like a child. Only children who are poorly brought up talk the way you do.

But do go on. Abuse me more, if it makes you feel better....go on.

ogwumgbe:


Lagos State generated 49 billion and got 15 billion, If they use that 49 billion in their state, it will improve the lots of the masses, what we the masses need from you is infrastructure, we have been surviving without your help, so let the states collect Vats and build good road network, constant electricity, adequate water supply, we will be willing to pay for it period

Why are u only referring to Lagos Everybody knows Lagos is the only state that can survive on its own. What of delta, osun, Oyo, Kwara, etc Should the people living there perish? What vat did these states generate, abi it's only Lagos on the map of nigeria.

Im just looking at the ignorant folks clapping hand for rivers judgement. In few months time same people will cry blood. If your dear Lagos decide to increase VAT to 20% u will still be the ones crying to FGN.

You need to desist from pushing this unfounded bullshit theory. Stop being a northern leech.

Modrovdeux:


And then there is the fact that in some states , VAT would be higher than in other states

Plus, VAT on alcohol bought in Lagos and sold in Enugu...VAT WOULD be paid in both Lag and Enugu.

At any rate.....my worry is the unintended consequences, not whether state or FG charges vat.

blackpanda:


Why are u only referring to Lagos Everybody knows Lagos is the only state that can survive on its own. What of delta, osun, Oyo, Kwara, etc Should the people living there perish? What vat did these states generate, abi it's only Lagos on the map of nigeria.

Im just looking at the ignorant folks clapping hand for rivers judgement. In few months time same people will cry blood. If your dear Lagos decide to increase VAT to 20% u will still be the ones crying to FGN.

No State is poor in mineral resources in Nigeria, they should get to work and use it to bring income to their States. Time of hand outs are over,

ogwumgbe:


No State is poor in mineral resources in Nigeria, they should get to work and use it to bring income to their States. Time of hand outs are over,

Oh so u now agree that FGN is giving handouts rather that collecting Mind u 65% of VAT is generated by federal govt.

Also when u say get to work on mineral resources, hope u know that all mines and minerals in nigeria belongs to federal govt

blackpanda:


Oh so u now agree that FGN is giving handouts rather that collecting Mind u 65% of VAT is generated by federal govt.

Also when u say get to work on mineral resources, hope u know that all mines and minerals in nigeria belongs to federal govt

All mines and minerals belong to the States, land use act give the states the right of all lands in their respective States. This is the restructuring we are talking about, States should control resources in their region and pay tax to the center, then we move forward

Modrovdeux:


And at the end of the day, many of you would pay higher for some of your favorite consumer products due to....higher VAT in some states, plus double vat collection (VAT being collected on goods sold in Lagos for distribution in Enugu..where another VAT would be collected)



Plus, it does not solve the issue of low level of taxation by state and federal governments.

Modified

Many companies have their HQ in Lagos. VAT would, under a state by state process, be higher in Lagos, since many companies pay VAT on their profits, which are reported in Lag. Then the products they produce.will attract VAT in each and every state where they are sold.

At the end of the day...higher taxes in form of higher prices.

I don't think this will be an issue. Since the VAT is 7.5%, the State where those products are produced would have like 5%, while the State/States that such products are being distributed to would have/share like 2.5%. No double taxing.

Damidave1124:
Idiot FIRS. They want to be eating where they did not sow.

Southern senators should see that the bill never surface again

lol. Looks like u didn't read everything. What u suggested was stated in there... It's dead!

kenic:
You need to desist from pushing this unfounded bullshit theory. Stop being a northern leech.

Good morning to you too, fellow leech.

excel101:
I don't think this will be an issue. Since the VAT is 7.5%, the State where those products are produced would have like 5.5% while the State that such products are being distributed to would have like 2%. No double taxing.

Thanks for opposing my views without abuse and in a good way.

I can see that working well. Especially since we live in the computer age and tracking goods is more easier

kenic:
You don't want to be abused then stop pushing your myopic northern idea forward because it's more of an insult to the intelligent ones from the South. Some states in the South are fed up with your cheating system of governance.

The thing is you can oppose my view without abuse ( as indeed some have done here)

Using abuse anyway does not reflect badly on me.kt reflects badly on the abuser.


Also the world is full of people with different views. There are many views on this site that I don't agree with and may even regard as misguided. But if I responded with abuse to all of them , I would rightly be considered a Arrow.

honda001:


All state VAT should not be equal in the first place...you expect a state like eboyi state to be equal to Abuja..,..afterall house rent is far cheaper in the former.

At the end of the day prices for goods would be higher in some states compared to others and many of them would be in the South

Plus there is the issue of how it would apply to GSM companies and companies who report their profits in Lagos for goods sold nationwide

Either way it means higher prices

Modrovdeux:


So, can you explain what VAT is, please.?

Plus, here is what scares me



Which means higher prices.

SAUCE

VAT is charged on the VALUE ADDED on a product.

So at the current level every state you go to you pay 7.5% on the margin the sellers added.

So with the above how exactly are you going to pay more?

Read Wike’s statement he said Rivers tax should be for rivers people .

That’s the only change you will see.

blackpanda:


Why are u only referring to Lagos Everybody knows Lagos is the only state that can survive on its own. What of delta, osun, Oyo, Kwara, etc Should the people living there perish? What vat did these states generate, abi it's only Lagos on the map of nigeria.

Im just looking at the ignorant folks clapping hand for rivers judgement. In few months time same people will cry blood. If your dear Lagos decide to increase VAT to 20% u will still be the ones crying to FGN.

Leech get to work and stop being a parasite. At the end you'll discover that your lazy region would be better of.

Darkblood:
You are getting it wrong.
vat is tax on consumption, it's until u consume u incure that tax, the state where the product is consumed the most is where they vat will be collected, it's easy... There are some products which are VAT exempted like agric products states producing such produce should add value to it so they can get vat from it. Enough of being spoonfed, governance should be left for smart people, If u can't think outside the box resign

“VAT is a tax on consumption” , you said. That is exactly where the problem lies because your statement following immediately shows you don’t have full grasp of vat technicalities. You assumed consumption that is vatable to be that of final consumers alone. That is SALES TAX not VALUE ADDED TAX.

VAT as the name implies is tax on value added at each stage of production and distribution and every entities that contribute to those stages must be involved in vat process.

Let us take for example a beer produced from malted barley, wheat, maize or sorghum and vat at 7.5%.

If you buy the beer at N107.50 (I.e. N7.50 vat @ 7.5% added to N100) in Enugu, which state should the N7.50 vat go to? If your answer is Enugu state, you are talking of Sale Tax not VAT and I assure you, if it is sale tax that is applicable, the final price will be in region of N130 not N107.50 because the savings made from vat processes will not apply as I will explain below.

Now continuing with our beer example, let us assume, the beer is sold in Enugu, produced by a brewery in Abia that got its sorghum, barley, maize and wheat from Kano, sugar from Adamawa/Lagos/Kwara, bottles from Kaduna/Ogun and other inputs from abroad.

The Abia breweries will pay vat on the prices it buys these inputs (for ease, we assume all are vatable) from the producers in each state, process the inputs and fix the price it sells to distributors. The difference between the price it sells to distributors and the cost of inputs is the value it has added which is vatable. The difference between the price you buy from distributors and the price the distributors pay to the brewery is the value added by the distributors which is also vatable.

You can see the value chain from the barley producers in Kano, the sugar producers in Adamawa/Lagos, the bottles producers in Ogun/Kaduna, importers from abroad (paying vat directly to FG), the brewery in Abia and the distributors in Enugu.

In order for your VAT paid to remain at the hypothetical N7.50 stated earlier, all the producers listed in the value chain must claim back all the vat they initially paid at each stage otherwise the vat won’t be 7.5% of the final price but agregation of all all input vat paid. So each producer is required to remove vat it paid on input from the vat it charges on its output and remit the difference to tax authority (which essentially amount to tax on only the value it added to the production process)

In essence, each state must get vat on the value added to the production processes within its jurisdiction.

Now, if there are many tax authorities, which of them will verify the input vat being claimed by the producers. This will raise another legal technicalities in future. If the states eventually win this collection war, the best bet is for them to revert to Sales Tax as obtained before 1993 rather than continue with VAT.

By the way, in future, who collects vat on telephone recharge, vat on imports at ports, vat on bank charges?

27Pushing30:


VAT is charged on the VALUE ADDED on a product.

So at the current level every state you go to you pay 7.5% on the margin the sellers added.

So with the above how exactly are you going to pay more?

Read Wike’s statement he said Rivers tax should be for rivers people .

That’s the only change you will see.

The problem starts when

1. Different states charge vat at different rates. This will affect the prices of things like airtime to alcohol. And some states are going to charge higher. Because revenue from crude is low. And debt is high


2. Mtn pays vat on its national profits in Lagos for example..with states collecting vat, MTN is going to end up paying vat 37 times over. At the end of the day that means higher prices for airtime. Which you guys don't want.

3. Suppose I buy alcohol wholesale in Lagos? I pay Vat there. But I am selling the alcohol in delta state..i then pay Vat there as well. At the end of the day, prices shoot up due to the double tax I am.paying. plus the beer maker is still paying VAT on the profits made nationwide to Lagos where it's hq is

Good decision.

Modrovdeux:


Precisely


Which is why you should ask your state governor to ask for a more equitable distribution of the VAT cash, rather than push for states to collect VAT..which means higher prices. The road to hell is paved with good intentions.

(I recall when VAT was brought in in the early 1990's. It led to increase in prices automatically. )

Hmmmm, anything to get the lazy northerners off their lazy asses should be a must. A state like Kano, so called commercial hub of the north generating 2.4billion in a month, really and they have 44 local government and 6 million plus voters
You said the road to hell is paved with good intentions, true, so also the road to heaven is very narrow.

Let the right thing be done, other issues can be resolved later, even Lagos has reduced it’s VAT to 6%. There is nothing that can’t be resolved

Modrovdeux:


Thanks for opposing my views without abuse and in a good way.

I can see that working well. Especially since we live in the computer age and tracking goods is more easier

Thank you too.

tnerro1:


Hmmmm, anything to get the lazy northerners off their lazy asses should be a must. A state like Kano, so called commercial hub of the north generating 2.4billion in a month, really and they have 44 local government and 6 million plus voters
You said the road to hell is paved with good intentions, true, so also the road to heaven is very narrow.

Let the right thing be done, other issues can be resolved later, even Lagos has reduced it’s VAT to 6%. There is nothing that can’t be resolved

Even if it means higher prices for everyone. North or South.


Even if it means telcos have to pay 36 different VAT rates meaning higher prices

Even if it means VAt is paid on goods bought wholesale in Lagos and sold in imo or rivers?

This isn't a North South thing. It affects all of is eventually.

Darkblood:
You are getting it wrong.
vat is tax on consumption, it's until u consume u incure that tax, the state where the product is consumed the most is where they vat will be collected, it's easy... There are some products which are VAT exempted like agric products states producing such produce should add value to it so they can get vat from it. Enough of being spoonfed, governance should be left for smart people, If u can't think outside the box resign

Question is; Is some stages of production not a stage of consumption?

Modrovdeux:


The problem starts when

1. Different states charge vat at different rates. This will affect the prices of things like airtime to alcohol. And some states are going to charge higher. Because revenue from crude is low. And debt is high


2. Mtn pays vat on its national profits in Lagos for example..with states collecting vat, MTN is going to end up paying vat 37 times over. At the end of the day that means higher prices for airtime. Which you guys don't want.

3. Suppose I buy alcohol wholesale in Lagos? I pay Vat there. But I am selling the alcohol in delta state..i then pay Vat there as well. At the end of the day, prices shoot up due to the double tax I am.paying. plus the beer maker is still paying VAT on the profits made nationwide to Lagos where it's hq is

Like I said you don’t understand what VAT is

1. state Governments will charge according to what is economically viable and politically acceptable. It’s 7.5 right now in all 36 states yet stuff are cheaper in some states compared to others ... why isn’t it uniform sales price across all states? If you understand why then you see argument #1 cannot hold water

2. MTN does not pay VAT on profits hence VAT is not reflected in P&L Oga (accountants can correct me if I’m wrong). What this even means is sales to a user using a Rivers network band would accrue a rivers government (best case scanario - IT inclined peeps can correct me if am wrong)

3. Right now with FIRS collecting VAT , if you buy alcohol wholesale in Lagos - don’t you pay VAT? And when you sell in Delta - don’t you also pay VAT?

27Pushing30:


Like I said you don’t understand what VAT is

1. state Governments will charge according to what is economically viable and politically acceptable. It’s 7.5 right now in all 36 states yet stuff are cheaper in some states compared to others ... why isn’t it uniform sales price across all states? If you understand why then you see argument #1 cannot hold water

2. MTN does not pay VAT on profits hence VAT is not reflected in P&L Oga (accountants can correct me if I’m wrong). What this even means is sales to a user using a Rivers network band would accrue a rivers government (best case scanario - IT inclined peeps can correct me if am wrong)

3. Right now with FIRS collecting VAT , if you buy alcohol wholesale in Lagos - don’t you pay VAT? And when you sell in Delta - don’t you also pay VAT?

1. You are being too idealistic.

2. Yes Vat is paid on telcos and airtime.

3. And at the end of the day I pay Vat in both Lagos and delta. If that's not double taxation , what is.?

Modrovdeux:


And at the end of the day, many of you would pay higher for some of your favorite consumer products due to....higher VAT in some states, plus double vat collection (VAT being collected on goods sold in Lagos for distribution in Enugu..where another VAT would be collected)



Plus, it does not solve the issue of low level of taxation by state and federal governments.

Modified

Many companies have their HQ in Lagos. VAT would, under a state by state process, be higher automatically in Lagos, since many companies pay VAT on their profits, which are reported in Lag. Then the products they produce...will attract VAT in each and every state where they are sold.

At the end of the day...higher taxes in form of higher prices.

Higher taxes and higher prices?
What else is new?

Modrovdeux:


1. You are being too idealistic.

2. Yes Vat is paid on telcos and airtime.

3. And at the end of the day I pay Vat in both Lagos and delta. If that's not double taxation , what is.?

1. Explain

2. So what is the problem?

3. What is the difference between states collecting this so called “double taxation” rather than FG collecting this double taxation

The funny thing is nothing will significantly change for the common masses in the sates, more money for the governors and their cronies.

27Pushing30:


1. Explain

States aren't going to keep vat at 7.5%..it is going to rise. Especially since revneues from Abuja are low...and it won't be Northern states alone.

2. So what is the problem?

At the end of the day, MTN could be paying 37 differing VAT , one per state. Which they will pass onto us in the form of higher prices.(And if you think they won't, someone has a horse to dash me)

3. What is the difference between states collecting this so called “double taxation” rather than FG collecting this double taxation

FG collects VAT once and for all, and shares the revenue among the states.


P.S

I suggest you also read the below quoted...

klas:


“VAT is a tax on consumption” , you said. That is exactly where the problem lies because your statement following immediately shows you don’t have full grasp of vat technicalities. You assumed consumption that is vatable to be that of final consumers alone. That is SALES TAX not VALUE ADDED TAX.

VAT as the name implies is tax on value added at each stage of production and distribution and every entities that contribute to those stages must be involved in vat process.

Let us take for example a beer produced from malted barley, wheat, maize or sorghum and vat at 7.5%.

If you buy the beer at N107.50 (I.e. N7.50 vat @ 7.5% added to N100) in Enugu, which state should the N7.50 vat go to? If your answer is Enugu state, you are talking of Sale Tax not VAT and I assure you, if it is sale tax that is applicable, the final price will be in region of N130 not N107.50 because the savings made from vat processes will not apply as I will explain below.

Now continuing with our beer example, let us assume, the beer is sold in Enugu, produced by a brewery in Abia that got its sorghum, barley, maize and wheat from Kano, sugar from Adamawa/Lagos/Kwara, bottles from Kaduna/Ogun and other inputs from abroad.

The Abia breweries will pay vat on the prices it buys these inputs (for ease, we assume all are vatable) from the producers in each state, process the inputs and fix the price it sells to distributors. The difference between the price it sells to distributors and the cost of inputs is the value it has added which is vatable. The difference between the price you buy from distributors and the price the distributors pay to the brewery is the value added by the distributors which is also vatable.

You can see the value chain from the barley producers in Kano, the sugar producers in Adamawa/Lagos, the bottles producers in Ogun/Kaduna, importers from abroad (paying vat directly to FG), the brewery in Abia and the distributors in Enugu.

In order for your VAT paid to remain at the hypothetical N7.50 stated earlier, all the producers listed in the value chain must claim back all the vat they initially paid at each stage otherwise the vat won’t be 7.5% of the final price but agregation of all all input vat paid. So each producer is required to remove vat it paid on input from the vat it charges on its output and remit the difference to tax authority (which essentially amount to tax on only the value it added to the production process)

In essence, each state must get vat on the value added to the production processes within its jurisdiction.

Now, if there are many tax authorities, which of them will verify the input vat being claimed by the producers. This will raise another legal technicalities in future. If the states eventually win this collection war, the best bet is for them to revert Sales Tax as obtained before 1993 rather than continue with VAT.

By the way, in future, who collects vat on telephone recharge, vat on imports at ports, vat on bank charges?