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VAT Is A Consumption Tax, Not A Sign Of Productivity - Politics (2) - Nairaland

Nairaland ForumNairaland GeneralPoliticsVAT Is A Consumption Tax, Not A Sign Of Productivity (1021 Views)

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Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Validated(op): 8:24am On Dec 09, 2025
Ttalk:
You are not making sense, most things you mentioned above are not VATable.

There's no vat on the maize you farm.

If the maize is taken to my state and a company there processed it into conflake and distribute into supermarkets, then the company generate VAT out of the raw materia turned into finished product

The state that has the company that process the corn and the supermarket with high disposable income that sells the finished products generate VAT

The company grows
The supermarket grows
The people consume quality flakes
The government of the state makes more money for development
The entire state benefit and grow

That is why it is called VALUE ADD TAX
So because they are NOT-VATABLE, those states are NOT-PRODUCTIVE. Is that correct? Then why do you equate VAT to productivity if MOST of what Nigerians including you FEED ON are NOT-VATABLE?
Because you have a company producing Coca-Cola, which is VATABLE, the state that FEEDS you with NON-VATABLE goods is Not Productive.

You are not smart. You now see that VAT collection is no yardstick fir PRODUCTIVITY.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ttalk: 8:27am On Dec 09, 2025
nedu666:
What a load of bunkum. If rivers and all oil producing states were to keep their revenue where would the remaining states see revenue to share. You talk like other states don't collect oil revenue.
Read his comment and see your response. Is everything okay
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Validated(op): 8:28am On Dec 09, 2025
Since many of you cannot learn, I have to leave you guys with your ignorance. Keep WALLOWING SELF DECEIT!
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 8:29am On Dec 09, 2025
Ttalk:
You even have time to breakdown the explanation so he can comprehend, but trust me, he will come up with another lame excuse just to justify the poor revenue generation capability of his region and overall poor performance of its economy
SE have this unwritten agreement with their governors not to tax them in return for the populace throwing a blind eye to their governors laxity, corruption and ineptitude.

Only in SE , do they see politics as business and expect their governors to reap from their investment in running for office.

As long as the money being embezzled is coming from Abuja and not their pockets, the people are OK.

This is what Solodu has been complaining about the hostility of the populace to pay their fair share in developing their own state instead of over relying on FG handouts
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ttalk: 8:32am On Dec 09, 2025
Validated:
So because they are NOT-VATABLE, those states are NOT-PRODUCTIVE. Is that correct? Then why do you equate VAT to productivity if MOST of what Nigerians including you FEED ON are NOT-VATABLE?
Because you have a company producing Coca-Cola, which is VATABLE, the state that FEEDS you with NON-VATABLE goods is Not Productive.

You are not smart. You now see that VAT collection is no yardstick fir PRODUCTIVITY.
It is a northerner that should be making that case and not a SEner.

It is generally noted just as mentioned above that if agricultural raw product are VATable, then the SE will be in the distance bottom.

You should know this because SE is not a net producer of agricultural products, they depend largely on the north and SW for supply of these agricultural products

This will even increase the contribution of the income generated from the VAT by SW and the North.

There's no how you spins it, SE poor VAT revenue is a reflection of the region overall economic outlook
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Validated(op): 8:39am On Dec 09, 2025
Christlike01:
VAT, a tax payable on consumption, reflects the purchasing power and economic activity of the people in the area where it is generated. Therefore, if the South-East is generating the least VAT in Nigeria, it clearly shows that the region has the lowest level of economic activity in the country. Higher VAT collections generally indicate stronger economic activity and spending levels in the area where they are generated. Productivity cannot truly be high in a region where businesses are shut down every Monday. I think you should stop deceiving yourself.
Where does MTN generate VAT and where is it remitted? Just bold your answer. You just copy textbook definition that is NOT applicable in Nigeria. This is the problem with our education ... theory without application.

The VAT MTN generates in Maiduguri is collected in Lagos. So, how is Lagos the more productive State? The imports that are going to Onitsha is VATed in Apapa, what is Anambra stake in it? The VAT NNPC generates in Olibiru is collected in Abuja, so tell me how your TEXTBOOK definition makes sense.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 8:40am On Dec 09, 2025
Validated:
Since many of you cannot learn, I have to leave you guys with your ignorance. Keep WALLOWING SELF DECEIT!
Obviously you had one tab open for chatgpt when posting here.

Let me educate you that OpenAi has a disclaimer that their machine does and will make mistakes.

You have been posting contradictory arguments from the very beginning of your thread which is a clear sign of AI assisted slop posting.

VAT in Nigeria is tied with production because its at that point effective auditing can be done on the appropriate tax amount.

Finally, when Rivers and later Lagos and Delta went to court and won a landmark ruling on VAT collection being exclusive to states with States keeping 50% and remitting the rest to the centre, why did none of your governors welcome the decision? All your governors went mute . It was the northern governors that begged the major VAT generating States to be their brothers keeper.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by PulaPower: 8:42am On Dec 09, 2025
Deluded Op..

I guess places like Paris, NY, Rome etc with high taxes are not productive too..

Like I told you Op, The east has always been a less productive region. Even during regionalism, it was the less productive region..

Before oil was discovered in Nigeria, go and ask how Nigeria fed your fore-fathers..
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 8:43am On Dec 09, 2025
Validated:
Where does MTN generate VAT and where is it remitted? Just bold your answer. You just copy textbook definition that is NOT applicable in Nigeria. This is the problem with our education ... theory without application.

The VAT MTN generates in Maiduguri is collected in Lagos. So, how is Lagos the more productive State? The imports that are going to Onitsha is VATed in Apapa, what is Anambra stake in it? The VAT NNPC generates in Olibiru is collected in Abuja, so tell me how your TEXTBOOK definition makes sense.
SE has the lowest active phone lines .

Even if we say VAT on Telco recharge are done at the state which it was activated, your state governors no go free because SE has the lowest active phone lines and so VAT from Telco recharge will be lower than even the north.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Validated(op): 8:43am On Dec 09, 2025
Ttalk:
It is a northerner that should be making that case and not a SEner.

It is generally noted just as mentioned above that if agricultural raw product are VATable, then the SE will be in the distance bottom.

You should know this because SE is not a net producer of agricultural products, they depend largely on the north and SW for supply of these agricultural products

This will even increase the contribution of the income generated from the VAT by SW and the North.

There's no how you spins it, SE poor VAT revenue is a reflection of the region overall economic outlook
Where did I mention any region sir? Your obsession with SE is dangerous. I only mentioned commodities that are not VATABLE, but you claim to be subsidizing them. For your information I am not a SEner. However, learn to respect every tribe.

VAT is NOT a measure of PRODUCTIVITY in NIGERIA (QED)
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ttalk: 8:45am On Dec 09, 2025
Validated:
Where does MTN generate VAT and where is it remitted? Just bold your answer. You just copy textbook definition that is NOT applicable in Nigeria. This is the problem with our education ... theory without application.

The VAT MTN generates in Maiduguri is collected in Lagos. So, how is Lagos the more productive State? The imports that are going to Onitsha is VATed in Apapa, what is Anambra stake in it? The VAT NNPC generates in Olibiru is collected in Abuja, so tell me how your TEXTBOOK definition makes sense.
Stop exposing your limited knowledge otherwise you would know that MTN has data of its subscriber from every state, so generating the value of airtime and data used in each state shouldn't be an issue, but you can't see it because you don't know it's possible
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Validated(op): 8:48am On Dec 09, 2025
Ttalk:
Stop exposing your limited knowledge otherwise you would know that MTN has data of its subscriber from every state, so generating the value of airtime and data used in each state shouldn't be an issue, but you can't see it because you don't know it's possible
The only way you can clear this is simple ... pull data from your so call VAT generation and share.
How about VAT at Apapa Port, do they collect them in Asaba Head bridge?
I import cars and sell in Benin, but all duties and VAT are collected in Apapa, how does it add to Edo State collections?
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ttalk: 8:52am On Dec 09, 2025
Validated:
The only way you can clear this is simple ... pull data from your so call VAT generation and share.
How about VAT at Aoapa Port, do they collect them in Asaba Head bridge?
Okay you have agreed that MTN can track the contribution of VAT accrue to each state.

Please, stop taking words out of ChatGTP, it's going to get you confused
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 8:52am On Dec 09, 2025
Validated:
Where did I mention any region sir? Your obsession with SE is dangerous. I only mentioned commodities that are not VATABLE, but you claim to be subsidizing them. For your information I am not a SEner. However, learn to respect every tribe.

VAT is NOT a measure of PRODUCTIVITY in NIGERIA (QED)
Your entire diatribe on this your thread is to dismiss how SE being the biggest beneficiary to VAT with the lowest contribution as being not a sign of SE in any way the least productive.

And why deny being from SE when we know you as one of several IPOB posters here?
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 8:53am On Dec 09, 2025
Ttalk:
Okay you have agreed that MTN can track the contribution of VAT accrue to each state.

Please, stop taking words out of ChatGTP, it's going to get you confused
I have been warning them on that useless AI and how they should never see it as a replacement to good research .

But them no go ever learn.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ttalk: 8:55am On Dec 09, 2025
DomPerignon:
Your entire diatribe on this your thread is to dismiss how SE being the biggest beneficiary to VAT with the lowest contribution as being not a sign of SE in any way the least productive.

And why deny being from SE when we know you as one of several IPOB posters here?
That was exactly his purpose of creating this thread.

In fact he is quick to jump VAT thread and each time he does, he gets defeated
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Jakpon: 8:58am On Dec 09, 2025
DomPerignon:
Finally, when Rivers and later Lagos and Delta went to court and won a landmark ruling on VAT collection being exclusive to states with States keeping 50% and remitting the rest to the centre, why did none of your governors welcome the decision? All your governors went mute . It was the northern governors that begged the major VAT generating States to be their brothers keeper.
That you very much for this. Please order a bottle of Champagne on my behalf. I have been expecting someone to raise this point.

Sanwoolu and Wike were very vocal about this Tax Collection, they were the one that took the matter to court. I followed the news closely then. Unsuprisingly, the south east governors turned deaf and dumb when the issue was burning while the Governors SW/SS championed the case
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ttalk: 9:02am On Dec 09, 2025
Validated:
The only way you can clear this is simple ... pull data from your so call VAT generation and share.
How about VAT at Apapa Port, do they collect them in Asaba Head bridge?
I import cars and sell in Benin, but all duties and VAT are collected in Apapa, how does it add to Edo State collections?
Below is the genuine post of your brother who want the progress of SE and not you who hide in SW but make all excuses for your lazy leaders.

Read below:

THE SOUTH EAST IS NOW THE LEAST MOST PRODUCTIVE PART OF NIGERIA THANKS TO KANU'S WAR.

To those calling me 'Efulefu' (Lost son) for calling out your fo+olishness in supporting Kanu and his war, this data is for you.

What Nigeria's 6 geo-political zones contributed to VAT and received in October 2025

1. South-west
Contributed: N333.01bn
Received: N91.88bn (27.59%)

2. South-south
Contributed: N80.48bn
Received: N53.79bn (66.84%)

3. North-west
Contributed: N41.82bn
Received: N64.07bn (153.20%)

4. North-central
Contributed: N20.51bn
Received: N44.32bn (216.09%)

5. North-east
Contributed: N18.94bn
Received: N44.17bn (233.21%)

6. South-east
Contributed: N13.26bn
Received: N36.91bn (278.36%)

Source: FAAC/TheCableIndex

So can you all now bend your knees and apologize to God for being partners in the destruction of our land?

When will we learn?

Before Independence the western Region was far more productive because of effecient management of resources.

They had smaller resources comparing to the North and Eastern Regions.

Then the cocoa and all the exports of the Western Region slaked in the world market.

The Eastern Region picked up from 1960 to 1965.

Then just like we were under a spell of the spirit of error. On our own we blew everything up using a coup and a war.

Then we began to build a fresh. Only for Kanu to emerge again and with you people's support he's blown the South Eastern economy again.

How can we claim to be entrepreneurs and business people but our region keeps lagging behind?

It doesn't make sense.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ofunaofu: 9:03am On Dec 09, 2025
Kdon2:
This must be obi people🤣
You need to learn basic economics

Everything shouldn't be reduced to politics of ethnic and tribal bîgótry
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ttalk: 9:06am On Dec 09, 2025
Jakpon:
That you very much for this. Please order a bottle of Champagne on my behalf. I have been expecting someone to raise this point.

Sanwoolu and Wike were very vocal about this Tax Collection, they were the one that took the matter to court. I followed the news closely then. Unsuprisingly, the south east governors turned deaf and dumb when the issue was burning while the Governors SW/SS championed the case
If you followed it critically like some of us, you'll remember they bombarded SM especially Nairaland with junk excuses and even triggered the north not to allow it happen. Just the way they presently criticise the Tax Reform Act, tomorrow they will to tell us they are the one feeding Nigeria through the tax they don't want to pay
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ofunaofu: 9:06am On Dec 09, 2025
Validated:
Since many of you cannot learn, I have to leave you guys with your ignorance. Keep WALLOWING SELF DECEIT!
You’ve done your best.

By now, you should know those folks well enough to recognize that the picture below reflects their current state of mind, reasoning and well-being

Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 9:07am On Dec 09, 2025
Jakpon:
That you very much for this. Please order a bottle of Champagne on my behalf. I have been expecting someone to raise this point.

Sanwoolu and Wike were very vocal about this Tax Collection, they were the one that took the matter to court. I followed the news closely then. Unsuprisingly, the south east governors turned deaf and dumb when the issue was burning while the Governors SW/SS championed the case
SE needs Nigeria more than they will publicly admit.

Their governors should educate their populace on this fact and get them to start investing and paying taxes in their state.

Even Solodu once told them in Anambra that federal allocations can't solve the state's financial obligations and fund projects and begged them to see income tax as a contributory responsibility to their state development.

All those shops in Onitsha hardly pay any form of tax outside local govt levies that are collected by empowered thugs.

The whole economy is one big grey black hole.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 9:12am On Dec 09, 2025
Ttalk:
If you followed it critically like some of us, you'll remember they bombarded SM especially Nairaland with junk excuses and even triggered the north not to allow it happen. Just the way they presently criticise the Tax Reform Act, tomorrow they will to tell us they are the one feeding Nigeria through the tax they don't want to pay
Their opposition to the tax reform was purely because it would end their welfare state and dependence on FG handouts as the Tinubu tax reform was to empower states to collect and keep half of the tax generated within their states.

I saw through their deciet and called them out on it.

You don't want to develop your own state by paying taxes and also attract investments by ensuring conducive environment for such but still want FG and other States to come and be funding your states.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by nedu666: 10:12am On Dec 09, 2025
Ttalk:
It is a northerner that should be making that case and not a SEner.

It is generally noted just as mentioned above that if agricultural raw product are VATable, then the SE will be in the distance bottom.

You should know this because SE is not a net producer of agricultural products, they depend largely on the north and SW for supply of these agricultural products

This will even increase the contribution of the income generated from the VAT by SW and the North.

There's no how you spins it, SE poor VAT revenue is a reflection of the region overall economic outlook
You are very unstable. You said VAT is evidence of productivity. Validate just corrected you that the food produced in Nigeria is not tax aka vat. Now the same you is saying the north should be the one complaining. Who told you that it's only farm products in the north that is exempted from vat
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by nedu666: 10:16am On Dec 09, 2025
DomPerignon:
Their opposition to the tax reform was purely because it would end their welfare state and dependence on FG handouts as the Tinubu tax reform was to empower states to collect and keep half of the tax generated within their states.

I saw through their deciet and called them out on it.

You don't want to develop your own state by paying taxes and also attract investments by ensuring conducive environment for such but still want FG and other States to come and be funding your states.
Once again you are telling your usual lies
It's was northern politicians who opposed tinubu sharing formula for vat because agricultural products were exempt from vat and companies have no way of determining where their products finally end up. As a result if mtn hq based in lagos pays 1 billion as vat, do we say that mtn only sells its products in lagos so lagos should keep half of the vat
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by nairalanda1(m): 10:39am On Dec 09, 2025
Kdon2:
This must be obi people🤣
Yes, he supports obi, but he is very very right.

VAT is a consumption tax. He's even explained it for you, but you guys just want to play tinubu vs obi
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by mrvitalis(m): 10:40am On Dec 09, 2025
Globad:
Give an example of productivity measurement
GDP
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 10:40am On Dec 09, 2025
nairalanda1:
Yes, he supports obi, but he is very very right.

VAT is a consumption tax. He's even explained it for you, but you guys just want to play tinubu vs obi
And how do one consume without being productive and gainfully employed?
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by DomPerignon: 10:41am On Dec 09, 2025
mrvitalis:
GDP
Now its GDP that your fellow Obidients have been castigating as not a measure of economic activity ?
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by nairalanda1(m): 10:48am On Dec 09, 2025
DomPerignon:
And how do one consume without being productive and gainfully employed?
Exactly, but at the same time it is a measure of consumption, even though it goes into the government coffers.

The real tax for me is....income tax, tax from the manufacturing industries, and tax from things like road tolls, and so forth.
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by Ttalk: 11:10am On Dec 09, 2025
nairalanda1:
Exactly, but at the same time it is a measure of consumption, even though it goes into the government coffers.

The real tax for me is....income tax, tax from the manufacturing industries, and tax from things like road tolls, and so forth.
Economic indices doesn't stand in isolation. The outlook of a particular induces is directly link to other. In a country where VAT is one of the major sources of revenue, any of the state with poor remittance of VAT will give an insight to how terrible the economy of that state is
This is the simple fact the OP is struggling to dismiss
Re: VAT Is A Consumption Tax, Not A Sign Of Productivity by mrvitalis(m): 11:27am On Dec 09, 2025
DomPerignon:
Now its GDP that your fellow Obidients have been castigating as not a measure of economic activity ?
GDP is a measure not production
GDP per capita is a measure productivity and progress
HDI is a measure for development

Didn't you guys do basic economics? Please what school did you attend
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