₦airaland Forum

Okiton:
You are a mad man

Most of you run into a thread on a social media. Just to comment trashes.
Most companies paying taxes to Lagos State government are not operating there. They only do so cos their heads offices are located there. However, companies who pays major in taxes are oil companies and these Oil companies operates in South South and Southeast states of Nigeria

yemmight:
Abokis they cheat us no be small,

Gboom:
Tax reforms is making provision for source where the VAT is consumed and not the headquarters syndrome.

brain54:
Look at benue state...

Only me can contribute that amount sef.


Some of these states cannot sustain themselves.

And they are still clamoring for more states that can only leeach on others to survive.

Something is also fishy about kano contributing on 9 billion Inspite of its huge size when a state like oyo is doing 32 billion and smaller less industrial states are doing more numbers comparatively!

pandax:
Na Lie ooo!. Lagos is robbing every other state using the HQ rule!

brain54:
As far as I am concerned...

Those are two of the most useless states.

Despite receiving huge allocations and their relatively small size and populations they still have the least to show in terms of developments!

FearlessYoruba:
Then stop crying because the bill was sponsored by formal Lagos governor

EJEGBULEJE:
Be objective, the guy is making sense the VAT from HQ needs to be changed, you pay VAT to the business state of Operations,not HQ in another state.

Justiceleague1:
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Ok

Justiceleague1:
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babajero:
Lagos is robbing all Eastern and southern states.

onuman:
THE CURRENT OBSESSION OVER LAGOS VAT BY TINUBU'S PEOPLE IS DIVERSIONARY PROPAGANDA - DECEPTIVE CHEST BEATING.

Yoruba and far north Reps rejected the minimal increase in percentage from derivation on proceeds from crude oil asked by SS and SE reps at the National Political Reforms Conference during Obasanjo's civilian administration. The conference abruptly ended from there.
VAT Is never Nigeria's primary source of sustenance.

Ezmans:
if they move back Lagos I'll collapse

FearlessYoruba:
Eastern state has nothing to be robbed

prophetfire:
You are dead wrong. All MTN vat is credited to Lagos because that's where their headquarters is even though the man in that forest in Taraba state used MTN to make calls.
So the law that makes the place where the headquarters of a company is sited being the beneficiary state of their vat and other forms of tax is what favour Lagos and some states.
First bank for instance, even though they have branches all over Nigeria but their vat is credited to Lagos because that's where the headquarters is located.
So Lagos is actually robbing other states.
That same law also applies to where the registration address of a company is.
If you registered your company is Sokoto, but you are doing the business in Kano, Sokoto is where your vat and some other taxes go.
That's some of the things that the new tax law wants to change.
However the reason why the north is opposed to it is because sharing formula will also change. You collect something synonymous with what you contribute, no longer use of population and landmass.
Therefore states like Lagos though their contribution will reduce but they still have high numbers because of the volume of business activities and will still get something higher than others.
Northern states will now have to work hard to increase business activities in their states, and that's why they're screaming blue murder.

Ezmans:
remove what other states living in lagos contributed in lagos what remains?

aswani:
Fine, who after Tax Reforms have kicked in, will stop Kano state giving MTN a good deal to set up their headquarters in Kano stae? Or some of their factories producing cards etc up there.

It is the laziness mindset of not thinking out of the box because we are guaranteed monies monty that we don't have to account for that nerds changing, and not just for Northern states.

Elidrisy20:
oil producing states are get less

Pootle:
if anything clear for you for nigeria jus know say u dey on colos

Odingo1:
You are still not understanding it, it doesn’t matter where the company headquarters is located, what matters here is where the produced items is consumed and that where the VAT goes. Where a company locate their headquarters doesn’t matter.

jmoore:
How many times will they tell you that VAT system is flawed in Nigeria? It doesn't record VAT on point of sale, which is what is obtainable in a working system.

Example: Lagos is 'collecting' all the VAT from MTN because the headquarters of MTN is Lagos.

pandax:
Na Lie ooo!. Lagos is robbing every other state using the HQ rule!

aswani:
I thought it was as well but too many people conflate things here and act like they know what they are saying.

Bottom line is States need to work harder, laziness and entitlement is too entrenched.

bigboa:
Very succinctly put.

VAT is a consumption tax. This means it measures the economic activities reported in each state.
Some states like Kano may have a higher level of commercial/economic activity but what VAT is telling us is that a large portion of that data is not being captured.
The idea is simple: State governors have the responsibility to improve their states commercial and economic levels which will then boost the microeconomy (ie standard/cost of living metrics) in the states. The federal government's responsibility is to manage the macroeconomy (security, exchange rate, foreign policy) which it is already doing.

For too long, the federal government has taken on the responsibilities of the states and local governments and while not being able to cater to those responsibilities adequately, the federal government continues to falter and fail while handing a free pass to the state governors who feed fat while doing nothing.

Odingo1:
You are still not understanding it, it doesn’t matter where the company headquarters is located, what matters here is where the produced items is consumed and that where the VAT goes. Where a company locate their headquarters or production factory doesn’t matter. The state that is hosting the company will collect yearly turnover revenue tax from the company not the VAT of items produced by the company in state A and consumed in state B. State B will be credited with the VAT.

FearlessYoruba:
Eastern state has nothing to be robbed

brain54:
As far as I am concerned...

Those are two of the most useless states.

Despite receiving huge allocations and their relatively small size and populations they still have the least to show in terms of developments!

kaltonga:
With this tax bill and the result am seeing so far, I support the President fully on this.. Some will want to argue that is all about Lagos but it's not so
If my state Imo, will generate this poor and other states, especially in the south, then it goes to show how lazy and unproductive our governors are and with this bill all of them must sit up.. Any idiot that is against this bill is an enemny of the masses and should be stoned.
You can't tell me with all the SMEs in Aba and even in Anambara they are generating this poor volume in Vat that goes to show it's easy they are been lazy to collect the VAT or they are simply under declaring the actual amount based on the feeding bottle system.

So, President Tinubu must be encouraged to make this bill a reality, let we citizens at least for once start holding our governors to account not all the time FG.. Rubbish!

MightySparrow:
They say Ekiti is the poorest how come the VAT is bigger than these states,?

16. Èkìtì 1.84bn

28.Cross Rivers: N933.70m
29. Ondo: N931.28m
30. Bauchi: N976m
31. Abia: N705.39m
32. Ebonyi: N545.36m
33. Imo: N600.30m
34. Osun: N502.84m
35. Kebbi: N413.85m
36. Benue: N357.51m