₦airaland Forum

These APC and Tinubu supporters need more enlightenment.


Tinubu has been misleading them

givedemwotowoto:
SE contributes heavily through low unemployment from entrepreneurship, not by heavy consumption and big government spending.

I stay in Rivers and do business here. My tax remittance won't it be in Rivers .

IGBOS are natural travelers and they contribute more outside their region than any other tribe

OnionBandit:
lol! you go explain and defend tire. We all know you wouldnt have put this up if it were your favourite "leeches" at the bottom of the table 😂

The simple reasons the south East will forever be at the bottom of the table are :

1. They are everywhere, scattered like broken beads. Most of there businesses aren't located in the East

2. The south East is not attractive for investment. Insecurity, intolerance and so on..

This is saying it as it is!

You just assume the SE is not attractive for investments, but investors are buying land, setting up industries in agriculture, manufacturing, health and sports.

Try taking a trip to the East to clear your doubts and stop typing lies.

I won't watch you tell misleading information on this platform.

Ebinpawo1:
Using VAT remittance to determine economic contribution be very controversial.

Understand the principles behind VAT deductions and the Administration of VAT will help one with better understanding.

No doubt that Lagos houses the head office for most of the multi national companies and banks and other national big entities. But the products and services of those companies are consumed nationwide, while the VAT is collected and remitted centrally at the head office, just for convenient administrative sake.

So relying only on VAT contribution per region or state could be misleading. Rather a step should be taken further to breakdown the rate of consumption or propensity to consume by each region/state enhance understanding.

Honest question: Is VAT being calculated based on head office of collection or based on place of consumption?

franchasng:
These APC and Tinubu supporters need more enlightenment.

Tinubu has been misleading them

Serious enlightenment.

How many people are living in the SE for the zone to have high figures? NIN data says they are 80 percent of Lagos state. This means they are less than twenty million if Lagos is 23 million. Revenue can only be high if population is high.

Walai:
We need to add some IQ test before allowing people to comment here. Comments from these dundies are getting irritating

Really, funny clown 🤡

The region that is benefitting from Nigeria largest should be contributing as they like...the SE owe no one explanation why is share is low. You guys should face the North that has nothing to contribute to Nigeria expect from sharing...

givedemwotowoto:
Low VAT Doesn’t Mean Low Economic Contribution: The South East Nigeria Case

inoki247:
Lol with how you guys always attribute ehn Economic hub, the biggest market in West Africa...


So in one word all the big this and that are just big for nothing without adding anything to the purse...


If truly you guys are the economic hub and the biggest market in West Africa it will show on your Vat cause you can't be the biggest and be selling and Govt won't take out of it....

Actually VAT is only paid by companies that add value. It is not paid by traders

Tenses:
All the goods being sold in SE pay vat to Lagos state. Even all the banks and multinational companies in SE pay vat to lagos, Abuja or portharcourt where their head office is situated.

Correction. VAT contribution by state is calculated based on place of consumption/economic activity, not origin of production. It is not calculated by where the company’s head office is, but mainly by where the transaction happens.

For example: A bank headquartered in Lagos.
- Customer uses the service in Kano
- VAT is credited to Kano, not Lagos

Your statement on Igbo population in Lagos adding to Lagos VAT is correct, but a huge percentage of the VAT generated goes to the states that did not contribute as much. e.g. South East States and the other regions.

Which means, Igbo people in Lagos are indirectly contributing to their region.

So, it's a win win for everyone. There's no need to be emotional about it.

That's why Nigeria is better together if properly managed.

timbabng:
Correction. VAT contribution by state is calculated based on place of consumption/economic activity, not origin of production. It is not calculated by where the company’s head office is, but mainly by where the transaction happens.

For example: A bank headquartered in Lagos.
- Customer uses the service in Kano
- VAT is credited to Kano, not Lagos

Your statement on Igbo population in Lagos adding to Lagos VAT is correct, but a huge percentage of the VAT generated goes to the states that did not contribute as much. e.g. South East States and the other regions.

Which means, Igbo people in Lagos are indirectly contributing to their region.

So, it's a win win for everyone. There's no need to be emotional about it.

That's why Nigeria is better together if properly managed.

VAT is paid by companies. So how do the companies determine location of consumption?

Reference:
I disagree.
Consumption is CRITICAL to economic development.

I remember when China started it's massive economic expansion, the fears then was very low domestic consumption (as a result of many factors) and the Chinese Communist Party had to deliberately policy it's way to opening up the domestic market because that is what guaranteed sustainable economic expansion. Today the Chinese are the top ten consumers of most articles in the global marketplace.

In a nutshell if you are not consuming your production will stall down the line as soon as inventories overwhelm the supply chain.

Moreover in the very economically advanced countries consumption, spending, as a metric is a barometer of economic health and a predictor of future economic growth.

If states in the Eastern part of this country are saying they produce lots of stuff but do not consume much, there is something fundamentally wrong with that. It simply means such production is not creating wealth.

I can understand the argument that what is called 'west' is essentially Lagos and to some extent Ogun, both of which are highly cosmopolitan, urbane states and contain residents of all tribes and tongues living, intermingling and conducting business far removed from the sectarian pictures those who love tribalism love to paint.

But one cannot divorce consumption from productivity. If you produce you create wealth and wealth finds expression in what and how much you spend.

The disagreement here is not whether consumption matters. Nobody said that. Of course it does.

The problem here is the idea that low VAT equals low economic contribution - which necessitated this thread, or that production that doesn’t immediately show up as consumption “is not creating wealth.”

South Easterners live all over the country and operate production, importation, distribution, and retail channels from Aba and Onitsha to Kano and Lagos.

Also, your claim that production stalls unless it is locally consumed is false. Production can be sustained through exports, inter-regional trade, or subsistence consumption - all of which reduce unemployment and create value without necessarily increasing local VAT.

lawani:
VAT is paid by companies. So how do the companies determine location of consumption?

VAT is a consumption tax, so the final consumer bears the cost. Companies act as VAT agents for FIRS.

When a company sells goods or services, charges 7.5% VAT on its invoice, Customer pays price + VAT, Company remits the VAT to FIRS.

The location of the consumer is where the VAT is recorded for.

The company pays their own VAT only when they purchase things too.

givedemwotowoto:
The disagreement here is not whether consumption matters. Nobody said that. Of course it does.

The problem here is the idea that low VAT equals low economic contribution - which necessitated this thread, or that production that doesn’t immediately show up as consumption “is not creating wealth.”

South Easterners live all over the country and operate production, importation, distribution, and retail channels from Aba and Onitsha to Kano and Lagos.

Also, your claim that production stalls unless it is locally consumed is false. Production can be sustained through exports, inter-regional trade, or subsistence consumption - all of which reduce unemployment and create value without necessarily increasing local VAT.

I don't know what all the debate is about. The SE is less than ten percent of the population and the GDP expected from there should be around that percentage. If it is more, it means they are pulling more than their weight

timbabng:
Correction. VAT contribution by state is calculated based on place of consumption/economic activity, not origin of production. It is not calculated by where the company’s head office is, but mainly by where the transaction happens.

For example: A bank headquartered in Lagos.
- Customer uses the service in Kano
- VAT is credited to Kano, not Lagos

Your statement on Igbo population in Lagos adding to Lagos VAT is correct, but a huge percentage of the VAT generated goes to the states that did not contribute as much. e.g. South East States and the other regions.

Which means, Igbo people in Lagos are indirectly contributing to their region.

So, it's a win win for everyone. There's no need to be emotional about it.

That's why Nigeria is better together if properly managed.

that is a lie bro, because the companies are usually not equipped to determine where their goods were consumed.

TheStoriesOfMan:
You just assume the SE is not attractive for investments, but investors are buying land, setting up industries in agriculture, manufacturing, health and sports.

Try taking a trip to the East to clear your doubts and stop typing lies.

I won't watch you tell misleading information on this platform.

lol! make I go south East, so una go chop my flesh? tufiakwa

OnionBandit:
lol! make I go south East, so una go chop my flesh? tufiakwa

🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

Funny people with funny comments.

timbabng:
VAT is a consumption tax, so the final consumer bears the cost. Companies act as VAT agents for FIRS.

When a company sells goods or services, charges 7.5% VAT on its invoice, Customer pays price + VAT, Company remits the VAT to FIRS.

The company pays their own VAT only when they purchase things too.

I know the consumer pays but how can the producer be sure of the location of consumption?. Then VAT measures value added production and you have to credit that one to the location of the producer. If you turn ten naira to one million by value addition it will mean you pay high VAT. Who do you credit that to if not the producer?

This is my honest advice to the ibos, the tribe i love so much as mine as a detribalised Nigerian.

Go and develop your region, move your investments home and let other regions be coming to you to buy. Let's see if you'd not grow economically. Like I've always said, there are over 5m ibos living in lagos alone and abuja is next. That's huge. Can someone tell me of a street in lagos where there's no ibo shop? Move your pharmaceuticals,hospitality,transport, banking head quarters to the east and empty alaba market and ladipo market, move them to Anambra and see what would happe. You contribute greatly, not only to the SW vat but also to all the states where you're sizeable in mumber. 70% of Abuja hotels are owned by you guys. You own a lot here in lagos too. Vat comes from.all these areas.

ernieboy:
that is a lie bro, because the companies are usually not equipped to determine where their goods were consumed.

Maybe you need to do some research yourself.
For goods, they use final delivery location. For services, they use location. If you fly from Lagos airport, your VAT goes to Lagos. etc.

timbabng:
Maybe you need to do some research yourself.
For goods, they use final delivery location. For services, they use location. If you fly from Lagos airport, your VAT goes to Lagos. etc.

Correct!

Ebinpawo1:
Using VAT remittance to determine economic contribution be very controversial.

Understand the principles behind VAT deductions and the Administration of VAT will help one with better understanding.

No doubt that Lagos houses the head office for most of the multi national companies and banks and other national big entities. But the products and services of those companies are consumed nationwide, while the VAT is collected and remitted centrally at the head office, just for convenient administrative sake.

So relying only on VAT contribution per region or state could be misleading. Rather a step should be taken further to breakdown the rate of consumption or propensity to consume by each region/state enhance understanding.

This is just bullish, VAT is 7.5% everywhere, if I pay more VAT, it means I earn more.

What explanation are you doing, what is convoluted about this?

If you want to discuss standard of living, cost of living, those are separate discussions.

The pressure is real o

This VAT thing dey really pain una. I love that

givedemwotowoto:
Low VAT Doesn’t Mean Low Economic Contribution: The South East Nigeria Case

False, False,False.

First let me commend you for trying to be logical about the south easts position in terms of vat

But I'm sorry to inform you ,your surmise/logic is completely faulty and False.

Generally locations that are known for productivity and manufacturing all over the world also generate a high level of consumption.

The reason is simple - if you have a factory producing shoes and due to good profits the effect will trickle down to your staff in form of improved bonuses , pay and welfare, and in turn they will spend the gains on the necessary things of life : food ,clothing ,etc .

So there will be a higher disposable income and purchasing power parity even after exporting your products to other regions .

If you think my logic is wrong let's use one of your examples.

The usa is still a manufacturing and services powerhouse globally.

Texas and california are known as the top 2 locations for productivity.

The usa dont do VAT , they do sales tax instead and we are all agreed that VAT is also a consumption/sales tax.

Now guess the regions with some of the largest sales tax in USA?

Yes you guessed right - texas and california.


The honest truth is the south east is not as productive as you assume.

lawani:
I know the consumer pays but how can the producer be sure of the location of consumption?. Then VAT measures value added production and you have to credit that one to the location of the producer. If you turn ten naira to one million by value addition it will mean you pay high VAT. Who do you credit that to if not the producer?

I think you are mixing it up. Tax on Value added production is removed from what's remitted to the FIRS.

If you bought raw materials for N1000 and paid N75 VAT.
You used the raw materials to make a product of N3000 that you eventually sold.

The VAT on that N3000 is N225 but you will remove your initial N75 VAT and remit only N150 to the government.

timbabng:
I think you are mixing it up. Tax on Value added production is removed from what's remitted to the FIRS.

If you bought raw materials for N1000 and paid N75 VAT.
You used the raw materials to make a product of N3000 that you eventually sold.

The VAT on that N3000 is N225 but you will remove your initial N75 VAT and remit only N150 to the government.

You have by yourself explained it. Do you agree now that a company that pays VAT has substantially increased the GDP of it's location?. If you pay 70 billion in VAT you must have increased the GDP by one trillion

RichBoy247:
.
Go school, una no go hear. See as you dey disgrace yourself for internet now

Provide better analysis oga.

timbabng:
Your statement on Igbo population in Lagos adding to Lagos VAT is correct, but a huge percentage of the VAT generated goes to the states that did not contribute as much. e.g. South East States and the other regions.

Which means, Igbo people in Lagos are indirectly contributing to their region.

My grudge is with those who look at the SE VAT and then tag the SE a leech.