₦airaland Forum

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

ThierryJay:
To the best of my knowledge, Oil exploration in commercial quantities hasn't happened in any Northern State (Kogi is middlebelt) and no Northern State has been declared as oil producing. So the answer to your question is No based on available facts at the moment.

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

eldoradoxx:
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.

aribisala0:
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

vineyardfarms:
why wiill Northern states NOT protest STATES COLLECTION OF VAT?? The north need more money to finance boko haram and ransome payments. Which has become their tech industries.

kmcutez:
What of the VAT collected from the ports? Does it go to the state or federal government?

aribisala0:
I do not know but I do not think it is a major part of the total VAT

What activities in the PORT art VAT able? Maybe loading and unloading and Haulage

The main Charges at the ports are to NPA other than that is is import duty

There is something called Foreign non import VAT but I do not know what that is

Anyway

There is always time to go to court again if there is disagreement

ThierryJay:
The position of the North is expected because they are the least productive in terms of VATable activities. Their excuse of using the transportation value chain is so myopic. Is that the only business sector in Nigeria? Are they aware that the contribution of interstate logistics services to national GDP is small compared to oil imports, manufacturing of goods or even the regular services sector? Why should they then think that the challenges of VAT collection from a mere interstate transport should be the basis of determining who to collect VAT nationwide?

If this new judgement is implemented, Lagos, Ogun, South South and Anambra will carry most of the VAT leaving crumbs for many other states to share.

Ifiok21:
Very good. Everyone should develop their own local economy and encourage investors. Next is mineral resources. One state can not be producing and they will share the money to unproductive states.

Even company income tax should go to started and not FG. Because it is the states that are bearing the burden of the business.

EndBuhariNow:
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

Urbanchampion:
Why is every national disagreement always a case of the North vs the South? Something is fundamentally wrong with our Union, we shouldn't keep pretending that we're fine the way we are.

emorse:
An agreement could be reached and a mechanism worked out as regards interstate transport. For example, VAT is paid at the source while transit and destination states collect and tender proof of passage and receipt to get a share at the end of each month. Case closed.
That way, states will take their security and road infrastructures more seriously. Win - win for all of us.

aribisala0:
Transit states cannot claim VAT

Value is added when the goods arrive at their destination .
If I need to attend a wedding in New York Value is added by a transporter when I arrive in New York

That is the essence of "Value"

The goods are not on a sightseeing trip
Just like a text message of even passengers in an aircraft.

So VAT if the VAT is about transport will accrue at the Destination where the goods are consumed

In order to understand value better just conceive


WHAT is the customer or consumer PAYING FOR

aribisala0:
Just saw an interesting angle from Wike


He said when state Governments award contracts the contractor has to pay VAT

which is 7.5%
Ultimately the contractor will add to the bill because it won't come from their profit

That means every single State government contract attracts VAT which is taken to the centre and shared

aribisala0:
Just saw an interesting angle from Wike


He said when state Governments award contracts the contractor has to pay VAT

which is 7.5%
Ultimately the contractor will add to the bill because it won't come from their profit

That means every single State government contract attracts VAT which is taken to the centre and shared

emorse:
Can you imagine this? It means states that are willing to do some work will actually pay "omonile" fee or "deve" to those who just want to share the money.

I'm not a big fan of Wike but I really commend him for this move. Respect earned.

Buckeyemedia1:
The Supreme Court will correct it back to normal.

Buckeyemedia1:
85% for the state, 15% shared, What is the complaint?

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.