aieromon:


What do you propose?

Why is PAYE singled out of all the levies collected by the various states for scrutiny?

I suggest deleting section 59 of the Constitution. After that, states will be able to have more control over their tax policy. It's singled out because of the Constitution. I Personally, I do like the fact that the federal government doesn't charge income taxes. It's like America Pre 1913 before the federal government charged. (Yes, I know there was an income tax during the Civil War, but it was ruled unconstitutional)

C. Public Revenue


162

1. The Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.

Blue3k:


I suggest deleting section 59 of the Constitution. After that, states will be able to have more control over their tax policy. It's singled out because of the Constitution.

This applies to the personal income tax only. What happens when the states have "control"? You want state governments to reduce it when they're struggling to raise IGR? What is the percentage contribution of PIT to the states' IGR? How effective have they been in "controlling" the other forms of taxes within their jurisdiction? We hear them penalising banks and telecom masts for non-payment of taxes.

How many persons do you think pay the actual amount of PIT as defined in the Act?

Advice the states to expand their tax base and provide tax breaks to willing investors. It doesn't have to be PAYE.

ednut1:
state government in most states have cornered all these taxes plus FAAC for LGA. Yet people want states to have more powers. I don’t understand.

You struggle to hold 2 concepts in your head at the same time. Saying the state should have more powers doesn't mean you want Local Government not to have some level of automony. Lol do you also struggle to walk and chew gum 😅 🤣? Besides states are supposed to share revenue with local government but they don't.

How to improve local governments:
• Abolish State Joint Local Government Account
• Abolish Joint Allocation and Account Committee
• Direct allocation into Local government accounts
• Transparency in Local government affairs (fiscal and administrative)
• Fiscal Autonomy (pass budgets without approval of State governments)
• Local Government need to improve IGR

aieromon:


This applies to the personal income tax only. What happens when the states have "control"? You want state governments to reduce it when they're struggling to raise IGR? What is the percentage contribution of PIT to the states' IGR? How effective have they been in "controlling" the other forms of taxes within their jurisdiction? We hear them penalising banks and telecom masts for non-payment of taxes.

How many persons do you think pay the actual amount of PIT as defined in the Act?

Advice the states to expand their tax base and provide tax breaks to willing investors. It doesn't have to be PAYE.

I'd want my state to lower it or eliminate it. It will simply be replaced with a different tax. Your state can increase the income to whatever makes you happy in my scenario. What's necessary is increasing the tax base since that's the issue. I'm basing this on the laffer curve for taxes because you dont need high taxes to collect high receipts. I don't know the percentage of income taxpayers. I haven't seen a study on it. The courts exist to sort issues of taxes. If they're too high handed, they chase away business in their states.

Why shouldn't banks and telecoms be penalized for not paying taxes? Are you telling me the state wrongfully accused them or they shouldn't have to pay? I think only the rich Nigerians and government workers pay the paye tax. Those are people who can't disappear into the ether. I disagree Income taxes are good place to start for the reasons I listed on other comments.

Different tax rates will attract different types of individuals and companies. Let's say you're a retiree and earning a fixed income. Going to state with a flat or no income tax would be good. Certain states could choose to lessen tax rates on their citizens lower than what the federal government proscribes giving people more disposable income. That means more money to spend or invest into the economy.

ednut1:
i don’t understand you. 100k salary in lagos is equal to like 40k salary in osun. Assuming paye is 20%. Lagos guy pays 20k as paye, osun guy 8k. Abi no be so

No be so.
Both can't pay 20%, 100k is different from 20k.
The 100k guy can pay 20% while the 40k guy can pay 8%.

Blue3k:


You struggle to hold 2 concepts in your head at the same time. Saying the state should have more powers doesn't mean you want Local Government not to have some level of automony. Lol do you also struggle to walk and chew gum 😅 🤣? Besides states are supposed to share revenue with local government but they don't.

How to improve local governments:
• Abolish State Joint Local Government Account
• Abolish Joint Allocation and Account Committee
• Direct allocation into Local government accounts
• Transparency in Local government affairs (fiscal and administrative)
• Fiscal Autonomy (pass budgets without approval of State governments)
• Local Government need to improve IGR

this is like saying a man is mismanaging his inheritance, so therefore lets give it to his 12 years old son to manage. LGA officials in Nigeria are usually put there by state Governor or their party. In the north many of them only come to the secretariat when faac has landed and will be shared. On average LGAs in lagos get around 150m monthly ( around 2017 not sure of current amount). What touches their hand no reach 20m, if they complain or raise alarm. They will get suspended or frame by the governors. As for me I don’t think Nigeria can get it right. The country has to collapse totally and restart. Leaders like KSW of Singapore or Ghadaffi of libya is what we need 👹

ednut1:
this is like saying a man is mismanaging his inheritance, so therefore lets give it to his 12 years old son to manage. LGA officials in Nigeria are usually put there by state Governor or their party. In the north many of them only come to the secretariat when faac has landed and will be shared. On average LGAs in lagos get around 150m monthly ( around 2017 not sure of current amount). What touches their hand no reach 20m, if they complain or raise alarm. They will get suspended or frame by the governors. As for me I don’t think Nigeria can get it right. The country has to collapse totally and restart. Leaders like KSW of Singapore or Ghadaffi of libya is what we need 👹

You're allowed to tackle two issues at once. The states need more transparency and accountability. If your states decides to waste it the problem for the people that live their sadly. This has to be solved even if the tax structure never changes.

Governors aren't allowed to dipose local government leaders as courts have rules. If there's something in the constitution that says they are please correct me. The issue with local government elections they're essentially a scam because the State assemblies don't bother regulating it. You're free to your opinions on nigeria needing to collapse. You're also free to lead the next coup if you aren't scared.

Omowale2023:

No be so.
Both can't pay 20%, 100k is different from 20k.
The 100k guy can pay 20% while the 40k guy can pay 8%.

its not the same. I only used an average for example . The 40k guy will be taxed within the first two rates below. 7% and 11%

40k annually is 480k. So 300k * 7% and 180k *11%

100k annually is 1.2m. So 300k *7% , 300k *11%, 500k *15% and balance of 100k * 19%

Blue3k:

I'd want my state to lower it or eliminate it. It will simply be replaced with a different tax.

What state is this? Show how this strategy will improve its current IGR and residents disposable income. Give me a reason why I should relocate to this state because of zero income tax.

Blue3k:


You're allowed to tackle two issues at once. The states need more transparency and accountability. If your states decides to waste it the problem for the people that live their sadly. This has to be solved even if the tax structure never changes.

Governors aren't allowed to dipose local government leaders as courts have rules. If there's something in the constitution that says they are please correct me. The issue with local government elections they're essentially a scam because the State assemblies don't bother regulating it. You're free to your opinions on nigeria needing to collapse. You're also free to lead the next coup if you aren't scared.

everyone has the solution to Nigerias problem until they get appointed to a post or win political position. Na there you go know say water pass garri

aieromon:


What state is this? Show how this strategy will improve its current IGR and residents disposable income. Give me a reason why I should relocate to this state because of zero income tax.

Akwa Ibom is the state. A low flat tax of 2.5% means you keep more of your disposable income. If you have more disposable income you have money money to spend and invest making you wealthier. Why you'd opt to pay more in taxes if you arent getting double the services wouldn't make sense. The government will have to reduce waste in budget to though. The extra money goes into the economy encouraging growth and that money is taxed improving IGR. This assumes you widen tax net. The state already makes alot of its tax revenue from natural resources extraction. What it should worry about is cultivating a skilled work force and attracting businesses. If the income tax is zero states will probably opt for more sales and property taxes.

Let me know if you'd like to move in hypothetical Akwa Ibom. If you font that's fine. Can you explain the benefit of a uniform income tax if you believe it's preferable. How does it benefit individuals and states.

Blue3k:


Akwa Ibom is the state. A low flat tax of 2.5% means you keep more of your disposable income.

The capacity of a state to drive long-term economic activity such as boosting employment and offering effective public services is often demonstrated through the amount of independent revenue it can generate.

The amount of internal revenue a state is able to generate also demonstrates its financial strength and ability to function well, independent of the allocation from the federation account, according to experts.

Take note of the following:
IGR trend
IGR vs Federal allocation
IGR per capita
Recurrent expenditure

aieromon:

Take note of the following:
IGR trend
IGR vs Federal allocation
IGR per capita
Recurrent expenditure

This isn't a counter argument. Tell me why the plan isn't good idea if you're capable. What's wrong with a flat tax or no income tax if the tax net is widened. Did I not mention reducing government waste which would address the recurrent expenditures?

aieromon:




Take note of the following:
IGR trend
IGR vs Federal allocation
IGR per capita
Recurrent expenditure

you are arguing with someone who has either lost touch with the reality of Nigeria or has never lived here 🤣🤣.

ednut1:
you are arguing with someone who has either lost touch with the reality of Nigeria or has never lived here 🤣🤣.

Lol when you asked you a simple question you turned pussy run way from the question. Don't ride his coattails.

Blue3k:


This isn't a counter argument. Tell me why the plan isn't good idea if you're capable. What's wrong with a flat tax or no income tax if the tax net is widened. Did I not mention reducing government waste which would address the recurrent expenditures?

The screenshot says it all.

1. The state cannot pay salaries and pensions without FAAC contribution.
2. The state is struggling to improve revenue drive.
3. Take a look at the IRS figures
https://www.akirs.ak.gov.ng/reports
75% of the poor IGR is from the PAYE collection.

Now compare with Ebonyi.

aieromon:


The screenshot says it all.

1. The state cannot pay salaries and pensions without FAAC contribution.
2. The state is struggling to improve revenue drive.
3. Take a look at the IRS figures
https://www.akirs.ak.gov.ng/reports
75% of the poor IGR is from the PAYE collection.

Now compare with Ebonyi.

1. It doesn't at all because FAAC allocation belongs to them regardless.
2. A uniform tax code doesn't mean help them improve tax collection.
3. You still have to explain why you prefer it to states having different tax policies.
4. I already said they will have to improve tax collection regardless of tax policy. You guys seem to ignore.

Now quit running away from the question. Why is a uniform tax policy preferred to states constructing their own tax policies?

Blue3k:

Now quit running away from the question. Why is a uniform tax policy preferred to states constructing their own tax policies?

Policies? The only tax regulated by the FGN is the PAYE portion of the Personal Income Tax. Direct assessment is determined by the individual state IRS.

Do they have a problem with it? No state has complained since 2011 till date. Why reinvent the wheel?

Instead, I would prefer to provide an enabling business environment (business tax discounts) to a potential investor who would in turn employ indigenes who will in turn remit PAYE. PAYE is directly connected to employment rate.

He who has a decent job will have no problem paying income tax. Everyone wins.

aieromon:


Policies? The only tax regulated by the FGN is the PAYE portion of the Personal Income Tax. Direct assessment is determined by the individual state IRS.

Do they have a problem with it? No state has complained since 2011 till date. Why reinvent the wheel?

Instead, I would prefer to provide an enabling business environment (business tax discounts) to a potential investor who would in turn employ indigenes who will in turn remit PAYE. PAYE is directly connected to employment rate.

He who has a decent job will have no problem paying income tax. Everyone wins.

Do you have a reading comprehension problem? Do I need to rephrase the question for you? I asked you simple question don't run from the question or state opinions on topics you werent asked. Address the point posed before you. Why is a uniform income tax policy preferred to states constructing their own tax policies?

Sir I'm fine with you having your opinions on other topics abd discussing them but stop running away from the question. We already addressed the income tax is uniform. I didn't say any state complained. I already explained how and why different tax rates are preferable. I also told you keep the tax rates same under my scenario.

ednut1 your friend finally answered the question and low and behold it was nonsensical reasoning. I see why you decided to run away.

Blue3k:


Do you have a reading comprehension problem? Do I need to rephrase the question for you? I asked you simple question don't run from the question or state opinions on topics you werent asked. Address the point posed before you. Why is a uniform income tax policy preferred to states constructing their own tax policies?

Because the 1999 Nigerian constitution allows it, period. This is Nigeria, not the US.

Have you paid PAYE tax in Nigeria before?

aieromon:


Because our constitution allows it, period. Did your state governor complain?

That's a foolish response to the question but I can't say I expected much else from you. If the constitution is amended tomorrow it suddenly correct. No my governor did not complain. The governor complaining doesn't make the position correct because he's not the arbiter of truth in this world. That's childish reasoning. You have my respect for finally answering the question directly.

Blue3k:


That's a foolish response to the question but I can't say I expected much else from you. If the constitution is amended tomorrow it suddenly correc. No my governor did not complain. The governor complaining doesn't make the position correct because he's the arbiter of truth in this world. That's childish reasoning. You have my respect for finally answering the question directly.

Ok.

Bump

Still waiting on someone to explain why a uniform tax policy is better than state deciding their own. It's weird how much people like uniformity in the federal republic if Nigeria. Even if the states need to improve tax collection there's little chance they'll all demand the same rates taxation. Honestly I believe the reason everyone is more obsessed about resource taxation is because they don't want to think these sort of taxes.