₦airaland Forum

WesternOligarch:
Define Igbo attire....what where your fathers wearing before 1914 or in the 1800s and what was the dress code of isiala ngwa igbo cannibals in those times? Your weakling governors do absolutely nothing while other regions demand what's due to them while your region burns to the ground, yet you people aren't bothered a bit about that.

Igbo attire ! ....what where your fathers wearing before 1914 or in the 1800s and what was the dress code of isiala ngwa igbo cannibals in those times?

Unik3030:
purge yourself of unnecessary hate n use your brain for once,this is done to curb accident but d victim mentality in u makes u see fulani in everything even when they are trying to help u.

Even if u can't have an erection it's still aboki

I laugh in hindi.. Hei..hei..hei

All I see is Southern governors of the Year, where is Northern governors own

COPIED FROM : PwC (Price Waterhouse Coopers) website

Nigeria’s VAT facts and figures
1.VAT was introduced in Nigeria via Decree 102 of 1993 and implementation began in 1994. It replaced the sales tax introduced via Decree 7 of 1986. Since introduction almost 3 decades ago, VAT has become the fastest growing tax revenue head in Nigeria displacing PPT (N1.52 trillion) and CIT (N1.41 trillion) in 2020 to claim the top spot at N1.53 trillion.

2.The 1999 Constitution does not mention VAT, Sales or Consumption Tax even though the VAT law predates the 1999 constitution. The omission means it is considered a residual item which falls within the remit of state to legislate on based on S.4(7) of the 1999 Constitution.

3.The VAT act has been amended several times with key changes such as clear definition of exempt items, exemption threshold for small businesses with annual turnover not exceeding N25m, requirement for foreign suppliers to charge VAT, self-charging of VAT, exclusion of rent, land and building from the scope of VAT, etc

4.Over 500 food items are exempted from the national VAT including bread, cereal, fish, milk, fruits, yam and water. In addition, education books and materials, tuition, medical services, shared passenger transport, commercial air travel, and rent are exempted.

5.VAT collection in 2020 was N1.53 trillion out of which about 51% represented import VAT and international services. The top contributing sectors are professional services & telecoms 10.6%, other manufacturing 10.07%, commercial & trading 5.06%, breweries, bottling & beverages 3.90%, transport & haulage 2.84%.

6.Alcohol which is banned in some states contributed less than 3% of total VAT collection

7.Some big sectors contribute very little to VAT revenue due to the nature of their operations e.g. banks & financial institutions contributed 1.62% (because VAT is only charged on a small component of their income such as fees & commission but not on interest or premium), oil marketing contributed only 0.63% given that VAT is not charged on petroleum products.

8.In line with S.40 of the VAT Act, revenue is shared 15% to Federal Government, 50% to States & FCT, and 35% to Local Governments. The principle of derivation of not less than 20% is reflected in the distribution to states and LGs. Although not stated in the VAT Act, other factors used in the distribution are equality 50% and population 30%. There is a 4% cost of collection for FIRS and 2% for NCS in the case of import VAT.

9.States with the highest derivation are Lagos (50.5%), FCT (13.2%), Oyo (2.9%), Rivers (2.7%), and Kano (1.4%). The bottom 32 states contributed only 7% with the bottom 3 being Abia (0.08%), Osun (0.07%), and Zamfara (0.06%). On the other hand, amounts shared by the top states & their LGs are Lagos (14.7%), Kano (3.8%), Oyo (3.2%), Rivers (2.7%) and FCT (2.5%). The bottom 3 states shared Osun (2%), Abia (1.6%), and Zamfara (1.6%).

10.In the early years of VAT introduction, filing and payments were made based on branch locations. This practice was complicated especially with respect to offsetting of input against output VAT. A central system of filing was therefore introduced about a decade ago. This means VAT is currently filed and remitted centrally by companies based on their head office locations. This gives rise to what I call the “Headquarters Effect”. For instance, all the Telcos, Banks, big manufacturing companies, top professional firms etc with head offices in Lagos remit their VAT to FIRS offices in Lagos. This artificially inflates the VAT attributed to Lagos while reducing the VAT revenue attributed to other states. Other major states may suffer the HQ effect to some extent e.g. PH Electricity Disco based in Rivers but serving other states.

 Implications of a States’ VAT regime
1.If states enact their VAT or Sales tax laws, the guaranteed winners will be the federal government in respect of import VAT and international transactions (whether retained by FG only or paid into the Federation account and shared), and the FCT. States that may either lose or gain are Lagos and Rivers due to HQ effect and subject to collection efficiency. Lagos also has to deal with granting input VAT at 7.5% on items sourced by businesses outside the state against the lower output VAT rate of 6%. All other states and 774 local governments will be worse-off, all things being equal.

2.The positions of all states will be negatively impacted by lack of capacity to collect, difficulty in auditing compliance, and higher cost of collection which may be up to 15% especially in states where consultants and other forms of agency structures are used for tax collection.

3.States that have existing consumption tax such as Lagos, Edo and others would have to repeal those laws when introducing VAT or sales tax as to do otherwise would amount to legislating double taxation.

4.Small businesses with turnover not more than N25m that are exempt under the national VAT would have to comply with VAT under the states VAT laws.

5.Penalties for failure to register is as high as N50,000 for the first month and N100,000 for each subsequent month while the fine for failure to keep records to ascertain the correct VAT is up to N250,000. This penalty regime will weigh heavily on businesses especially SMEs such as barbers, hairdressers, tailors, shoemakers, plumbers, bus and taxi drivers, makeup artists, restaurant owners, etc. This further increases the risk of such businesses being harassed and extorted in many states especially those employing tugs to enforce tax compliance.

6.People will pay more, but government will collect less due to inefficiency of collection and leakages. There will be higher cost of goods and services arising from input VAT claim and refund complications in addition to items which are not exempted under the states VAT law such as rent, tuition, processed foods such as amala, suya, jollof rice, and ogbono soup. In addition, there will be incidence of double taxation due to likely conflicts between origination and destination principle in different states. Worse still when the reality of inability to implement VAT hits home many states will inevitably introduce sales tax with its cascading effect.

7.Nigeria’s ease of doing business and paying taxes will deteriorate in view of the multiple VAT compliance and Nigeria’s tax to GDP ratio will decline.

8.Tax practitioners including lawyers and accountants will benefit as the states VAT regime will create multiple fee opportunities to assist taxpayers comply.

9.Local governments will be worse off. Effectively between states and LGs, the VAT revenue split under the national VAT is 59% to 41%. However, states are prescribing lower rates for LGs e.g. Rivers 30%, Lagos 25%.

10.FIRS will lose cost of collection on VAT revenue within states and may have to improve its operational efficiency to sustain current capacity or seek additional funding from the National Assembly which will reduce revenue accruing for sharing to all level of government.

 Conclusions and recommendations
​The connotation that the current VAT controversy will improve fiscal federalism is superficial. Out of the top 7 taxes in Nigeria, 3 accrue entirely to states & local governments (personal income tax, property taxes, and stamp duties) while the remaining 4 (companies income tax, petroleum profits tax, VAT, import & excise duties) are shared to states & LGs at rates ranging from 43.32% from the federation account to 85% from the VAT pool. This is equivalent to 5 of the top 7 taxes accounting for over 95% of tax revenue in Nigeria accruing to states & local governments.

In the US, both the federal and state governments collect personal income tax while sales tax is only collected by states. Land which is a country’s most valuable natural resource is about one-third federally owned in the US while states own less than 10%, the rest are owned by private landowners, tribal authorities and counties. In Nigeria, land is owned almost entirely by states while personal income tax, the top revenue yielding tax head in the world, accounting for about 38% of tax revenue in South Africa, up to 41% in the US and over 30% global average, is entirely collectible by Nigerian states on their residents.

So, efforts aimed at addressing the current challenges need to be redirected. It is not a clash between states and federal government (amending the constitution is squarely within the purview of the National and States Assemblies). *It is also not a North vs South context, the 32 states that will suffer financially cut across all regions. And the impact of certain states sharing VAT from alcohol and spirits which are prohibited within their territories is exaggerated given that such products account for less than 3% of VAT revenue.*

Below are my thoughts on the way forward::
1.Put people first – any outcome that negatively impacts the majority of Nigerians is not the right solution just as we cannot claim to empower the subnational by weakening at least 32 states and all 774 local governments.

2.Address inequity - the current VAT revenue sharing formula among states is not equitable. This inequity should be addressed by allocating any domestic VAT collected from each state entirely to the respective state. Only VAT collected on imports, international services and inter-state transactions should be paid into the VAT pool and shared based on derivation. This will address the current controversy without creating new problems.

3.Give accelerated hearing – this is an issue of utmost national importance and should be accorded the urgency that it deserves by the judiciary and all key stakeholders. The uncertainty created is counter productive for business and tax revenue generation.

4.Redesign the VAT structure - regardless of the outcome of the ongoing court case, a more suitable VAT regime should be developed for Nigeria and clearly spelt out in the constitution. By extension, the tax system is overdue for a holistic review.

5.Avoid reversing progress – even if states are to collect consumption tax going forward, adopting the very old VAT law as we have seen with Rivers and Lagos state is a setback especially with respect to lack of exemption for small businesses, limited scope of exempt items, not addressing the digital economy and business reorganisation. The fact that a state has the legal right to enact a VAT law does not mean it should do so in a hurry. Sufficient time should be dedicated to consultation, stakeholder engagement, capacity building and administrative readiness before enacting the law with a minimum commencement of 3 months after enactment in line with the 2017 National Tax Policy. A model legislation may in fact be developed by the Joint Tax Board.

6.Grow the pie and optimise existing taxes – beyond ensuring equity in sharing the cake, everybody wins when we grow the pie. Creating a conducive business environment to stimulate the economy and creating employment will inevitably lead to more tax revenue for all levels of government. Examples include land reforms, unlocking dead assets and removing impediments to the ease of doing business.

Nigeria’s tax system is in a bad shape, which is set to get worse with the recent developments. To find the right solutions we must correctly define and properly situate the underlying issues to avoid misdirected prescriptions or “cobra effect” where the solution designed to solve a problem ends up making it worse.

Sources of data: FIRS & NBS.

FEAR Women...

MOST Of them are using their pet as sex objects. Being it dog, horse etc

Confuse people

Emergingnation:
See them every where , crying, wailing begging for unity...

It is only the gullible that'll believe this fake news, SE is on total lockdown...

..

SE is on total lockdown... Keep deceiving your selves.

Relocate to Afghanistan Useless us[url][/url]

Hanibbal:
Our Hypersonic missile is ready. We will fly it for all Nigerians to see during next month's independence day celebration. But the senate is still confused about what name to give the hypersonic missile but it is either Cowsonic eagle or Bubusonic hawk.

you are MAD

Yuo guys shouldn't think Ahmed musa has arrived at the hall of fame, He still has a lot to offer and to do

Selfish and Ronaldo

lwisee:
A lot of people will do bro, people with clean money will surely do.

Tell them, we are here waiting for CBN eNaira since day one

Wow, i really like Governor Hope Uzodinma, I am coming to Imo state to add third wife

This has nothing to do with Hisbah, it myopic opinion of Sehara ripotas

Jones4190:
Ortom is angry that Buhari didn't invite him to come and eat rice at Yusuf wedding

This one doesn't even look like a soldier

One of the doctors who were dispersed by the DSS operatives lamented: “We didn’t commit any crime; we just wanted a better system. So, why is the government trying to frustrate us?"

He said all he and other job seekers wanted was only employment from the Saudi Arabian healthministry.

https://www.facebook.com/267978826632355/posts/4655513887878805/?sfnsn=scwspmo

UNIVERSITY OF JOS (OFFICE OF THE VICE-CHANCELLOR)

Breaking: Re-opening of the school on the 30th of August 2021

Management of the University of Jos has assured that all measures have been taken to safeguard the lives and property of members of the University Community especially Staff and Students. Towards this end, security has been beefed up at the various campuses and Students hostels to forestall any breach.
Giving an update of the security situation in the University, the Acting Vice-Chancellor and Deputy Vice-Chancellor (Administration), Professor Gray Goziem Ejikeme called on all parents and guardians that the issue of security has been resolved and all security measure has been taken in other to protect the students and staff of the university of jos.

Consequently, the Management of the University of Jos, after an emergency meeting with the Committee of Deans, Directors and Provost on Monday, 23th August, 2021, has approved the resumption of Examinations for the Second Semester 2019/2020 Academic Session and all Academic Activities in the University will now continue as all ratification has been made by the Senate of the University.

Cc: @Maureensylvia @deluxiumng @

Signed:
Chief Monday Danjem
Registrar

See what these barbaric Christians has cost Jos, plateau state

Kudos to ABU, Non-interest Bank, Islam is the future

From Theory to Practice.

After 7 seven years of failing to fix Afghanistan, President Ghani made a hasty escape from the country.
It was an ignominious turn for Prof. Ashraf Ghani, a World Bank-trained technocrat who holds a doctorate from Columbia University and former chancellor of University of Kabul, as he often reminds people, wrote a book titled “Fixing Failed States.”
Instead of fixing Afghanistan during his nearly seven years in power, Prof. Ashraf Ghani fled much the way he governed: isolated from all but a handful of advisers who are said to have departed with him.
Prof. Ghani, 72 yrs, defended his decision to bolt in a social media post late on Sunday, writing, “If I had stayed, countless of my countrymen would be martyred and Kabul would face destruction.”
Others condemned his flight as a desperate act of self-preservation by a man whose failures paved the way for the Taliban’s return nearly 20 years to the month after the American-led invasion that led to their ouster following the Sept. 11, 2001, attacks.

Justifying his action in Academia
Most theories don't work in real life. Some are just good on paper.

The man was released as part of prisoner exchange deals by the Obama administration, not for amnesty or rehabilitation.

Katier00:
The girl's family is suppose to come first before the groom's family

What do you know... In the North groom's family is always the first.