₦airaland Forum

Charmingrascal:
Attorney General with questionable character is saying Justice is not for sale.

And what is the questionable character

DubaiLandLord1:
But, the FG shouldn't be the ones in charge of collecting VATs in a Federal system of Government.

In fact, it was under IBB the states agreed that the FG should start collecting it on there behalf.

You obviously don't know what u are saying

AfonjaConehead:
Then shut up,thanks

Shut up too and get lost

Wallade:
No, it is the right of the re-seller or buyer in Lagos to inform the Lagos State tax officials that the VAT has been collected on that product already. No product is eligible for double or multiple VAT except if it was further transformed into another finished product.

The re-seller in Lagos only needs to present evidence of VAT payment on the bill paid in Delta or Aba.

Smh. Are u living in nigeria or mythical fantasy land

Wallade:
A product should not suffer VAT more than once hence, when a product is made in Aba or Delta and sold to a buyer, the bill should include VAT.

When the product gets to Lagos, the VAT has already been paid so Lagos can't charge another VAT on it. Simple.

Do u think Lagos state govt in this scenario will care about that If u allow the states they are all selfish and thinking about only themselves. Each state will collect the same vat over and over again

AfonjaConehead:
Baba agba stop hitting your head on the wall,I'm not from the east

I do not care where u are from.

Catch them and jail them. Greedy thieves!

Ngorbungor:
Your write up is educative, but my question is why would Lagos state collect VAT that is meant for other state like in the oil sector that have all their headquarters in Lagos but the their production or service are in the Niger Delta? So how are we going to balance this abnormality

That is the more reason why FG should collect it once and from one source. Otherwise is will amount to multiple taxation. Many companies will fold up and leave. To be honest I think that rivers state judge was being partisan and irrational.

jesus19984:
Any discerning observer of what is happening with the VAT issue will recognise that there is a background to it. The facade of 'fiscal federalism' that protagonists are using is just a smokescreen for underlying causes.

Unfortunately, most people are unable to delve deeper into topical issues in Nigeria today because of a kaleidoscope of bigotry, tribalism, regionalism, sectionalism, religion and other divisive sentiments. The politicians who push these narratives understand so well that we suspend our thinking caps when these sentiments are thrown into the mix.

Furthermore, as a people, we are to shortsighted to even contemplate the medium and long term implications of some of the narratives we parrot.

Data is hard evidence, which cannot be controverted. Truth is a tyrant that doesn't campaign for votes. In the end, we shall be confronted with its brutality when reality stares us in the face.

Let's even start by examining what VAT means. VAT is an acronym for Value Added Tax. Operative word is 'Value Added'. So in a chain of operation in the production of a good or service when value is added, or form changes there is an incidence of taxation. However, the protagonists of the imposition of VAT by state governments want us to believe that VAT is wholly a consumption tax. This is very disingenuous, and far from the truth. I will follow up this with the definition of VAT after posting this.

Matter of fact, is that VAT is collected at the point of consumption of goods and services but doesn't make it wholly a consumption tax. In the chain of production, and for the purposes of taxation the point of consumption of a good or service is the end of the spectrum. In between, there are several levels of value addition and supply chain that must have taken place before the final end of the spectrum of consumption. So, for instance, a good consumed in Lagos that wasn't produced in Lagos doesn't mean that all the value and supply chains took place in Lagos. This is the fundamental principle underpinning value added taxation.

Why is VAT collected at the point of consumption? The reason is quite simple, and it is this fundamental principle that the protagonists want to destroy, which will have serious consequences for the economy and people of Nigeria. The reason for collecting VAT at the point of consumption is to prevent a situation of multiple taxation. If you consider a product or service with varying levels of value addition and supply chain, if taxed at every of these levels, the taxes will be unwieldy. Thus, every jurisdiction in the world where VAT is charged has an agreed formula for calculating value addition, which is then harmonised to come up with a single rate across board. Again, this is the principal reason why VAT in any jurisdiction is not imposed by Sub-Nationals or local authorities. I don't know of any jurisdiction in the world where VAT is imposed by Sub-Nationals or local authorities. I challenge anyone who knows to tell me.

The divisive issues thrown into the mix are simply laughable. So a serious issue has been reduced into just the issue of the restriction of the sales of alcohol in some states. I am a beer man, and I truly love my beer. In all my years of drinking beer, the only times I have recalled paying VAT for beer was when I go to some highbrow hotels or clubs. The vast majority of beer sold and consumed in Nigeria is done at roadside bars, 'abeigi', street corner shops and in-house bars. I can also tell you for free that the volume of alcohol consumed in Sabon Gari in Kano will dwarf that consumed Ado Ekiti or Ijebu Ode.

Governor Wike says that he received 2billion monthly from VAT. He failed to tell you how much the local governments in Rivers State receives from VAT allocation from the FGN. For teasers, in 2020, Rivers State contribution to VAT coffers was 42 billion. The Rivers State Government and local governments got a total of 39 billion. That's a difference of 3 billion.

Now to some data for us to have a better understanding of the issue. Proceeds of VAT is shared amongst the 3 tiers of Government after 4% collection charge in the following way:

Federal Government - 15%
State Governments - 50%
Local Governments - 35%

Of the proceeds of VAT the FG and the FCT generates about 61% via imports from the seaports and international airports while the States generate 39%

Of the 39% generated by the States, Lagos and Rivers State generates less than 70%

Now imagine a situation where the courts strikes VAT off the exclusive list. The Federal Government and FCT get to keep their 61% while the States will hussle for the remaining 39%. So, what now happens to the Local Governments where the transactions actually take place

So, in the not too distant future, the States that are enacting their own VAT laws will realise that they were chasing a mirage. The version of 'fiscal federalism', of 'food is ready' mentality obtained from the courts is just a phyric victory. They don't even have the structures the FIRS built over the last 20 years to even be able to collect the VAT.

What will be their reaction in the circumstance? Brace up for thuggish tax collectors. States will enact their own versions of the VAT law to include things like food that were exempt from the federal law. At the point of buying a goat VAT will be paid. At the point of slaughter VAT will be paid. At the point of eating it at a restaurant VAT will be paid. There will be multiple taxation, increased inflation, and the ease of doing business will be more difficult, as well as and cost of doing business will become higher.

Lagos and Rivers States pride themselves as the biggest contributors to VAT collection in Nigeria. This is another mirage. Lagos State for instance enjoys what you can term as 'headquarters effect'. What this means is that for tax reporting purposes companies with headquarters in Lagos file their VAT returns there. For instance, a company like MTN which sells airtime and internet services all across the country file their VAT returns in Lagos. In Rivers for instance, NDDC has its headquarters in Port Harcourt. If it goes to Innosson Motors in Enugu to buy vehicles, it files its VAT returns from Port Harcourt.

Let me end by going back to the background I alluded to in the beginning.

There are two basic things making the state governments to react the way they are now.

1). Local Government autonomy is bitting hard on them. They are finding it increasingly difficult to corner the resources of the LGAs especially with the NFIU breathing down their necks
2). The Governors are angry that the 3% of COPEX in the PIA is going directly to the oil bearing communities. They want it to come to the state governments just like the 13% derivation.

Interestingly, in the agenda there are sub agendas. Some are being blind sided by the sheninighans playing out. Ultimately, there will be many losers, including those cheering for the faux fiscal federalism carved in the image and likeness of the key players.

'Siddon look' mode activated�

Anthony Inaede

Why are u wasting your time. The people against VAT are not interested in being rational or reading any data. The only thing they like to believe is that VAT Judgment is against FGN so they rather suffer hardship than apply common sense

But your children don't need waec na. Waec is for the zoo

Itgeo:
They will come for ur head soon, just wait

I don't think I said anything that should warrant attack

[s]

thebosstrevor1:
Imagine, an only women university, where only women manages it, from the vice chancellor to the last staffs are all women, this idea of women seperation in Education even though gotten from the sharia and the Taliban will emancipate women from the predictory tendencies of Hot men in our society

I believe that only women schools and universities will help create more jobs for women, this time, they don't have to compete with men for any position, they don't have to be scared of men that want sex from them before they can write or pass an exam or get employment.

Life will be more better for them, less pressure abd ability to concentrate and reach their potential

[/s]

This is the dumbest idea I have ever heard. Pls nigeria is not Afghanistan biko

AfonjaConehead:
A quota system alumajiri will always be a quota system alumajiri anyday anytime...



#SAY NO TO PARASITISM

None of the eastern states is contributing anything significant in terms of VAT. So your comment doesn't make sense

This one is just playing to the gallery. All your fat salaries u have been collecting from senate, how productive have u been sir

Between Tinubu and Ibori who has contributed more to their society.


Both are political godfather's who people claim are in absolute control of their respective states.


So which state or godfather has done better in terms of development?

Solsix:
The funny thing thing about this is that be is a UK citizen and UK have not done anything in his purported kidnapp. Nawa

UK does not associate with known terrorists.
But isn't it the same UK that ipobist claims to hate

Idiko1:
Anything liberal politically and in conjunction with US Democratic Party and UK Labor Party spells doom for Africa. They are worse than snake.

Care to support your hullabaloo with any facts

Ipobist are very silly. Everybody knows the truth except them. When they tell u truth u call the person your enemy. Mumu people. The facts remain that ipob are terrorist and nnamdi kanu deserve death!

BKayy:
Believe Nigerian terrorist media at your own peril.
For the past few days, y'all have been seeing Nigerian propaganda on how they are wiping Bandits from Zamfara like a kid wiping it's soup coated fingers on hearing the mothers footsteps towards the kitchen, then boom "Bandits capture the military base in Zamfara"

I pity any group that is not in one way or the other fighting to leave this British experiment.

God bless Alaigbo
God bless Efik Nation
God bless Ibibio land
God bless Ekoi Nation
God bless Ibom Republic
God bless Biafra
God bless The Yoruba Federation

God punish Nigeria
Amen!

Return to sender in Jesus name

Nigerians are truly great. Today I discovered that the artist who sang the "Diamonds are forever-" 007 James Bond theme song is actually a Nigerian. Wow!


So proud to be born in this blessed nation!


https://en.m.wikipedia.org/wiki/Shirley_Bassey

Misguided ingrate

Who is this one trying to impress Mtscheeee

Must u make everything tribal

Kriss216:

Forced unity is no unity!

Nobody is forcing u. Go to cameroun or Mozambique

It's well

Am here

[s]

Kriss216:
Waste of prayers. Nigeria can never be united!

[/s]

U need help from toxicity and negative attitude

It's well

Story for d gods

Very good

Sanity must be restored to judiciary

enonche85:
Kano can never be 5% and Rivers 6%, it's impossible. Wike complained Kano generated 2.8bn from VAT and where given 2.8bn, while Rivers generated 15.6bn but were given only 4bn so how does that translates to 6&5 %s respectively?.

Is wike the one collecting VAT

Fuckyoumod:
oga where did you get this wack jacko statistics from? From your toilet or dirty kitchen? or you are uninformed and bustling with ignorance and stupidity like your parasite Brothers up north?

He's right. Those are the correct figures

This one is nothing but political talk. Benue state doesn't generate anything. Ortom is just fooling himself and the gullible ones