₦airaland Forum

benardtotti:
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.

You’re confusing where production happens with where consumption is captured.

VAT in Nigeria is recorded at the point of consumption, not where value is created. Production can drive employment, exports, and reinvestment while consumption – and VAT – is captured elsewhere.

Yes, Texas and California have massive formal retail systems that capture sales tax, but that's possible because they're also the 2 most populous states in the U.S.

In the case of the South East, production can be high, but with a smaller population and wide inter-regional trade, much of the consumption is captured outside the region.

More VAT mean your state or the place of production is favourable to producers. That mean the supporting state to industry shoulders the huge burden of pollution associated with industrial activities, deal with more vehicular activity of moving goods out into the market and other burdens generally associated with priduction-heavy zones.
The defence is too tame.

givedemwotowoto:
You’re confusing where production happens with where consumption is captured.

VAT in Nigeria is recorded at the point of consumption, not where value is created. Production can drive employment, exports, and reinvestment while consumption – and VAT – is captured elsewhere.

Yes, Texas and California have massive formal retail systems that capture sales tax, but that's possible because they're also the 2 most populous states in the U.S.

In the case of the South East, production can be high, but with a smaller population and wide inter-regional trade, much of the consumption is captured outside the region.

I think the new tax laws are trying to tie vat to point of value and no longer point of consumption.

The usa sales tax captures it at point of sale/consumption.

If the new tax laws actually capture point of value for vat going forward then let's wait and see what next year's stats will show us .

kollog:
You guys Sha like justifying things that didn't favour or go the way of SE.

So this justification now, what has it added to the VAT contributed.

Let all of us learn to embrace whatever is our reality and strive to improve in every aspect.

My 50 Cent.

Uga ignorance is costly,try and learn,not depending on statistics that are meaningless . Why not ask yourself why inspite of the low VAT collected in the south east,yet they have the least poverty ratio,have lowest number of out of school children,have lowest number of unemployed,have the highest number of educated people,have more developed rural area than any region in west Africa,have more states that are cleaner than other regions,according to statistics etc.
If you blink you miss out.

Guilty conscience else who ask una for explanation

These are facts known to all Nigerians home and abroad.

If most of the production in the South East occurs informally but the value of the products and services are felt nationally, it is important to know their exact nature that make them being "ineligible" for VAT.

In other words, does it mean such products and services are not regulated, or those who produce them have chosen to keep them from regulatory prism? If so, how safe could such goods and services be for the nation?

RichBoy247:
Explanation don start even when nobody ask you, abi who ask you? You go explain tire.

Shey baby factory merchants dey pay VAT ni?

See foolish talk. As if there's no baby factory in the southwest.

G

SonOfDSoil01:
Una go explain tire……..until you clowns start putting your money where your mouth is, you clowns will remain a joke…….ndi billionaire wey no fit show working but just empty noise of being the richest, the most this, the most that😂

What do your region produce apart from consuming and waiting for free food . Absolutely nothing.
They manufacture and send them down to SW for your to consume and pay tax 😂😂😂😂. Shame

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.

Then it should be to each State, according to the vat contributed.

Akwamkpuruamu:
VAT simply means U de tax Ur people too much

How many times have you been chased to come and pay VAT?

OBIDIENTNAIJA:
G
What do your region produce apart from consuming and waiting for free food . Absolutely nothing.
They manufacture and send them down to SW for your to consume and pay tax 😂😂😂😂. Shame

But you cannot consume if you don't have purchasing power.
Mind you, the heavier the production, the higher the consumption.

You have low VAT simple. Your contribution to Nigerian government is low. Ha ha ha ha

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

All the registered trading companies, logistics/transport companies, service providers etc pay VAT. The invoices on all your purchases and invoices you issued on supplies have elements of input VAT and output VAT respectively.

Now compare Southwest and Southeast youth economic engagement for one: everywhere in the Southwest their young men are doing 'twaile!' for commuters in the motor parks in exchange for N200 handout. While Southeast boys are engaged in nwaboy scheme learning trade/business and growing

Now tell me who is adding economic value to society?

givedemwotowoto:
You’re confusing where production happens with where consumption is captured.

VAT in Nigeria is recorded at the point of consumption, not where value is created. Production can drive employment, exports, and reinvestment while consumption – and VAT – is captured elsewhere.

Yes, Texas and California have massive formal retail systems that capture sales tax, but that's possible because they're also the 2 most populous states in the U.S.

In the case of the South East, production can be high, but with a smaller population and wide inter-regional trade, much of the consumption is captured outside the region.

Not sure what you mean by point of consumption?

Are there no VAT charges on business to business value addition
Don't warehouses charge VAT for warehouses
Don't transporters charge VAT,?

Is there no VAT on insurance, security and other services that businesses use?

What exactly is the number one thing produced in the SE that Nigerians buy
VAT happens to many steps in the value chain of producing a bottle of beer Even producers are consumers of VATgoods and services in the production process

OBIDIENTNAIJA:
G
What do your region produce apart from consuming and waiting for free food . Absolutely nothing.
They manufacture and send them down to SW for your to consume and pay tax 😂😂😂😂. Shame

Manufactured what

Name the biggest thing they manufacture just one

chicfarmer:
Nice explanation. Great perspective. Well done.

Very flawed explanation. He used United States as usual as example. Taxes there particularly vat are imposed by individual states according to their tax laws because they operate pure federation. In Nigeria we operate quasi-federation. Most tax laws excluding PIT but including vat are uniformly taxed by the center.

Gajagojo:
Manufactured what

Name the biggest thing they manufacture just one

Several and among them are Bigi,Honeywell indomie,Glo and accessories,Vitafoam etc

IbnB:
Now compare Southwest and Southeast youth economic engagement for one: everywhere in the Southwest their young men are doing 'twaile!' for commuters in the motor parks in exchange for N200 handout. While Southeast boys are engaged in nwaboy scheme learning trade/business and growing

Now tell me who is adding economic value to society?

SW youths are more productive than SE youths who are mainly touts.If you look at ipob,the picture confirms itself.
Lagos became the best tech city in the world because of its youths who are basi ally the most educated in Nigeria.
A whole lot of them are also in the Art and Entertainment where they dominate 75%.

Yes

RichBoy247:
.

Shey fake drugs manufacturing kiosks dey pay VAT ni?

I like how you guys deceiving yourselves on media propaganda while Southeast silently growing, this is not fabricated theory watch one of the industrial layouts in Anambra state, the state is building another massive industrial city call Anambra Mixed-Use industrial city which is now a free trade zone

Watch Harbor industrial layout Ogbaru Anambra state and cure your ignorance

https://www.youtube.com/watch?v=f3ATUt2aztc?si=Z5rBdrAgzC3bJXma

RichBoy247:
.

Shey fake drugs manufacturing kiosks dey pay VAT ni?

You can only hate Igbo but you can't stop their progress, keep fooling yourself with propaganda, you guys believe on government handout with propaganda while Igbo believe in themselves this is another industrial layout in Anambra Nnewi


https://www.youtube.com/watch?v=5p4OCD1WYYI?si=IcTewgWSuSG34W4m