₦airaland Forum

ThierryJay:
I referenced South South as a whole because almost all their States (except Edo) have significant downstream oil operations. VAT on downstream operations will be significant for those States if it should go to them.

Please, can you explain more about the VAT to be collected on downstream operations?

mekonglobal:
Point of correction oldman, i am neither PDP nor APC but anything that will jottle this APC led govt from the sleeping embers is welcome by me.

Stop deviating alaye. U're a bloody partisan fella..

Just know that The PDP u're talking abt @Rivees contribute 6% compare to APC Lagos contributing 55% .,.

Oil operations isn't included in VAT

ThierryJay:
I referenced South South as a whole because almost all their States (except Edo) have significant downstream oil operations. VAT on downstream operations will be significant for those States if it should go to them.

They actually are.

ORIENTATION101:
Oga commot anambra, they re not generating more igr than delta,kaduna

This is a very good news from Rivers and Lagos. Other states should follow suit asap. Northern state cant be benefitting from things they desist ie. Beer and prostitution.

DanielPop:
oga, tell your governors to collect VAT on your "onions, potatoes, tomatoes, greens , fruits, grains, beans, electricity" and stop spewing nonsense! Let states trade with each other and not the "going to Abuja cap in hand" bambialah mentality that currently operates. If you hate beer, hate everything from beer! Full stop. Your northern states can't be destroying businesses and using funds generated from other states to build religious houses and sallah rams! Wike and Rivers state is spot on! States should collect VAT and remit agreed percentage to the FG. End the obnoxious robbing of Peter to pay Paul. All hands must be on deck to stop the stupid Marxian distribution formula of "from each according to his ability to each according to his need." Going forward, let he that works eat!


[quo914 mu2sa2 post=105503154]Hypocrites. After a sumptuous meal made with mainly ingredients from the God blessed region you come here to say rubbish. North produces nothing, according to them - not even onions, potatoes, tomatoes, greens , fruits, grains, beans, electricity (hydro-electric generated in the north). Hypocrites- you will starve. Ritualists, kidnappers, robbers, domestic terrorists aka militants, lazy parasites. God bless north more.

Lol, the sad thing for the North at the emboldened is that under the law, there's no VAT on agricultural produce. So OYO is their case, nothing to collect on all those food they produce.

This is a big wake up call for Northern States to devise ways of being more investor friendly and shun all these archaic laid-back mentalities. Saudi, UAE and co are also strong Muslim territories but are attracting foreign investors.

The sad part is that it is unlikely that the judgement will be upheld at the Supreme Court for obvious reasons.

cocolacec:
The East and the North contribute little to the Nigerian estate.The two parasites in Nigeria are Northerners and Easterners.

Ogun IGR Is More Than The Whole South East States Combined - Deji Adeyanju

and you will always be the first to comment and condemn the East when ever they demand to leave with their little but nothing to national purse... don't you think it will be nice they go and stop taking from the one you contribute through mining of skulls in ogun Coward

Nigeria is a federal system and VAT is not a Federal tax but state tax charged on goods and services consumed within a state. I wonder why the North is never ready for true federalism while their Southern counterparts are. It goes to prove what we have been saying, the North is a parasite feeding lazy on the hardwork of the Southerners and their businesses who pay all these VAT for consumption done in the South. Rather understudy how to effectively collect VAT, Northern States want a collective purse for VAT collected nationwide where they will be in charge dishing out huge junk to themselves while the States that generated the VAT go with little. God bless Wike of Rivers State for testing this VAT issue in Court. Any State that cannot collect its VAT can partner with FIRS to be collecting for them.

Penguin2:
This is music to my ear.

Aboki cannot be destroying thousands of crates of beer every time but rush to Abuja every month end to share in VAT generated from beer.

Lagos and Rivers, and other high IGR states are about to be extra rich.

Shebi north said it’s not a parasite? That it has vast landmass and agricultural produce? Ngwanu let it start taxing every piece of land in the north. Let it tax those selling onions, yam, tomatoes, donkey, camel, and the rest.

…and banditry, which is a big industry in the north

ThierryJay:
Lol, the sad thing for the North at the emboldened is that under the law, there's no VAT on agricultural produce. So OYO is their case, nothing to collect on all those food they produce.

This is a big wake up call for Northern States to devise ways of being more investor friendly and shun all these archaic laid-back mentalities. Saudi, UAE and co are also strong Muslim territories but are attracting foreign investors.

The sad part is that it is unlikely that the judgement will be upheld at the Supreme Court for obvious reasons.

They can charge income tax on those producing the foodstuff. Also VAT isn't just the only tax you can raise from such. This might be an issue from the start as most are subsitence farmers but in the end would push more people into structural agriculture where mechanization is the main stay and in turn boost the income of such states.


The elites know what they are doing. They can't push income taxes on the millions up north else those would start asking questions about good governance.

The solutions to most of Nigeria's problems are bare and easy to fix but there's the dishonesty part and unwillingness to take responsibilities from both the leaders and followers.

Esseite:
It's a good development... states would take security and tourism very serious which bring about infrastructure and business attractions.

On the second hand, you cant have only one functioning seaport and then a state tries to monopolize its VAT.

You also have to consider the fact that due to the monopoly of certain infrastructures in Lagos, it has been a massive brain drain from various states and regions.

Whose fault?
What are those states failed to develop since all these years?
Every state in Nigeria is blessed in one way or the other but high dependent on common wealth of the nation and lack of accountability is nailing majority of the states down in Nigeria
True federalism will bring out the best in every state

Penguin2:
This is music to my ear.

Aboki cannot be destroying thousands of crates of beer every time but rush to Abuja every month end to share in VAT generated from beer.

Lagos and Rivers, and other high IGR states are about to be extra rich.

Shebi north said it’s not a parasite? That it has vast landmass and agricultural produce? Ngwanu let it start taxing every piece of land in the north. Let it tax those selling onions, yam, tomatoes, donkey, camel, and the rest.

Na their own go worse pass, bandits dey one corner dey collect their own VAT, govt go collect..
Whatagwan...
Barman give another bottle of pepsi...

Cofused people.

Bundaweber:
No. Some certain taxes should be the exclusive preservers of the fg. Don't be carried away by this news , state governments already have massive amount of cash coming in from their own set of taxes but they squander it away. They even under report their tax earnings so as to loot them

Why should VATs from state be the exclusive preserve of state in a federal system of government? States needs more money.

Nigeria is a federal system and VAT is not a Federal tax but state tax charged on goods and services consumed within a state.

ThierryJay:
Lol, the sad thing for the North at the emboldened is that under the law, there's no VAT on agricultural produce. So OYO is their case, nothing to collect on all those food they produce.

This is a big wake up call for Northern States to devise ways of being more investor friendly and shun all these archaic laid-back mentalities. Saudi, UAE and co are also strong Muslim territories but are attracting foreign investors.

The sad part is that it is unlikely that the judgement will be upheld at the Supreme Court for obvious reasons.

It is possible to process agricultural products and "add value"
e.g this Peeled beans product should attract VAT just like Sugar or Beer, Tomato puree, etc

kmcutez:
Please, can you explain more about the VAT to be collected on downstream operations?

Sorry it's my mistake. Downstream operations (marketing and sale of petroleum products) is exempt from VAT. I wanted to refer to upstream operations (Crude Oil exploration) which is not specifically VAT exempt.

Also, all upstream petroleum companies are required to withhold VAT at source from their suppliers and service providers when those ones present invoices. This would mean that the VAT withheld from many of the entities that support oil companies operations in the SS would have to be remitted to those SS states where the goods or services were consumed.

emmadejust:
The issue of paying multiple vat for goods & vehicles on transit because of interstate , will affect cost of transportation & goods etc ,
For example if you bought goods from Lagos going to port harcourt, you will be demanded to pay 7.5% vat along any state you passed because of states collection

VAT is borne by final consumer

smeag0l:
Oil operations isn't included in VAT

Upstream oil operations (crude oil exploration) are not exempted in VAT exempt list. Only downstream operations are I.e marketing and sale of petroleum products. Most upstream activities occur in the south south.

Also, oil companies withhold VAT at source from their vendors servicing them (often in the SS). The VAT withheld would have to be remitted to those states where the services were consumed.

Batam:
Whose fault?
What are those states failed to develop since all these years?
Every state in Nigeria is blessed in one way or the other but high dependent on common wealth of the nation and lack of accountability is nailing majority of the states down in Nigeria
True federalism will bring out the best in every state

Don't waste your breath on mischievous IPOBs

Yeah, this is actually true.

ThierryJay:
Upstream oil operations (crude oil exploration) are not exempted in VAT exempt list. Only downstream operations are I.e marketing and sale of petroleum products. Most upstream activities occur in the south south.

Also, oil companies withhold VAT at source from their vendors servicing them (often in the SS). The VAT withheld would have to be remitted to those states where the services were consumed.

mu2sa2:
Hypocrite. When truck drivers from the God blessed region stopped work for a few days, prices of foodstuffs skyrocketed in the south - lamentation everywhere. God has blessed Nigeria through the north.

I think you are massively deceiving yourself, and the good thing is that you know that.

If i were a northerner(and sometimes i wish i am), I would be ashamed of our present terrible situation. And that shame would push me to start doing things differently than they have been done so far.

The north, in almost any index is FAR behind the south and almost every part of the world for that matter. The indexes(poverty rate, unemployment rate, illiteracy rate, preventable diseases ratio, terroism index, etc etc) in the north is actually in the same group as war torn countries in the world- i hope you know that.

Again, if i were a northerner i would be pushing the most for a complete change in the way things have been done in the country. I would never accept to perpetually be a "parasite" the way it seems currently.

aribisala0:
It is possible to process agricultural products and "add value"
e.g this Peeled beans product should attract VAT just like Sugar or Beer, Tomato puree, etc

You are right that processing will render VAT exemption inapplicable on most agricultural produce.

The real question is whether most of the processing activities happen in the North or the South.

The implication for Lagos State is game changing

Lagos state generates 70% of VAt

This year in the First quarter VAT was about 500 billion naira which means Lagos could be on course to make up to 1.4 trillion a year from VAT alone

Money dey Lagos sha

ThierryJay:
Sorry it's my mistake. Downstream operations (marketing and sale of petroleum products) is exempt from VAT. I wanted to refer to upstream operations (Crude Oil exploration) which is not specifically VAT exempt.

Also, all upstream petroleum companies are required to withhold VAT at source from their suppliers and service providers when those ones present invoices. This would mean that the VAT withheld from many of the entities that support oil companies operations in the SS would have to be remitted to those SS states where the goods or services were consumed.

Got you. Thanks. So Rivers will be collecting VAT from companies like Schlumberger, Halliburton etc if oil is drilled in Port Harcourt, Delta if the oil is drilled in Delta etc. What of the oil exploration? Who is going to be collecting the VAT?

ThierryJay:
Lol, the sad thing for the North at the emboldened is that under the law, there's no VAT on agricultural produce. So OYO is their case, nothing to collect on all those food they produce.

This is a big wake up call for Northern States to devise ways of being more investor friendly and shun all these archaic laid-back mentalities. Saudi, UAE and co are also strong Muslim territories but are attracting foreign investors.

The sad part is that it is unlikely that the judgement will be upheld at the Supreme Court for obvious reasons.

Nigeria is a federal system and VAT is not a Federal tax. The FIRS will lose at the Appeal and Supreme Court.

ThierryJay:
You are right that processing will render VAT exemption inapplicable on most agricultural produce.

The real question is whether most of the processing activities happen in the North or the South.

I was suggesting that as an option for the North. To think of how to add Value . e.g Washing , weighing and packaging things like Onions, beans, dried pepper, garlic, ginger etc

aribisala0:
The implication for Lagos State is game changing

Lagos state generates 70% of VAt

This year in the First quarter VAT was about 500 billion naira which means Lagos could be on course to make up to 1.4 trillion a year from VAT alone

Money dey Lagos sha

Jesu. Where is all that VAT coming from? You guys should try and take control of your ports. Hopefully the SS takes control of their oil.

kmcutez:
Jesu. Where is all that VAT coming from? You guys should try and take control of your ports. Hopefully the SS takes control of their oil.

https://nairametrics.com/2021/05/08/nigerias-vat-collection-surges-to-n496-4-billion-in-q1-2021/

The funny thing is VAT increased this year from 5 to 7.5 % . It could still go all the way to 15% or more

kmcutez:
Got you. Thanks. Rivers will be collecting VAT from companies like Schlumberger, Halliburton etc if based in Port Harcourt.

Correct. They will also collect VAT from Shell and Mobil's exploration activities based in their State.

Northern States parasitic nature is progressively on the mode of being tamed by the Southern States. We have so many programs coming up soon to finally nail this northern parasitic, Almajaris dependent tendency on the Southern states.....If your useless Fulani president can't step up restructuring or reconstitute a good And new national consistution or better make Nigeria a federating Units like we were after independence, then here we come with a more decisive action which ofcourse backed by the law. Enough of the never ending parasitic nature of the northern states couple with unending terrorism that has gulped trillions of dollars from southern states coffers and before I forget, the penchant for stealing by the northern oligarchy, politicians and their families......

ThierryJay:
Correct. They will also collect VAT from Shell and Mobil's exploration activities based in their State.

Does that mean the North will also collect VAT based on oil exploration in their states?

aribisala0:
I was suggesting that as an option for the North. To think of how to add Value . e.g Washing , weighing and packaging things like Onions, beans, dried pepper, garlic, ginger etc

Oh okay. I got you now. Brilliant idea for them to create environment for establishing processing plants in the North.