₦airaland Forum

chinedu234:
The vat is from non oil products. Did you study economics?

Most economists worth their salt know that the value of the Naira flunctuates with the price of oil becuase it is currently our major export.

So your calculation must acknoweldge that the price of oil between the two periods is vastly diferrent.

Mariory:
Most economists worth their salt know that the value of the Naira flunctuates with the price of oil becuase it is currently our major export.

So your calculation must acknoweldge that the price of oil between the two periods is vastly diferrent.

A look at the entire economy is different from the issue of vat that Fowler threw up. But in case you have a more elaborate explanation than the one he brought forward to compare 2012 and 2018 vat collections please put it up. We shall dissect it. Just bear in mind the actual meaning of vat. What I accuse the present government and Mr Fowler of is either hypocrisy or ignorance.

chinedu234:
A look at the entire economy is different from the issue of vat that Fowler threw up. But in case you have a more elaborate explanation than the one he brought forward to compare 2012 and 2018 vat collections please put it up. We shall dissect it. Just bear in mind the actual meaning of vat. What I accuse the present government and Mr Fowler of is either hypocrisy or ignorance.

No we're talking about the value of the naira to the $ which you brought up. You cannot compare the value of Tax revenue of both periods in $ without taking into consideration the value of oil in both periods due to the type of economy we have in Nigeria.

As a result I do not see any hypocrisy or ignorance.

Mariory:
No we're talking about the value of the naira to the $ which you brought up. You cannot compare the value of Tax revenue of both periods in $ without taking into consideration the value of oil in both periods due to the type of economy we have in Nigeria.

As a result I do not see any hypocrisy or ignorance.

Okay. 1. The factor responsible for the fluctuations in forex rate brought about inflation rates which were responsible for the different nominal values of the vat collections. In other words,the underpinning factor of usd is the only acceptable denominator to ascertain estimated values of the collections. Since the government and Fowler were interested in comparing nominal values over time without inputting the impact of other variables (hypocrisy),it became a duty to inform them about the availability of the appropriate economic viewpoint. I rest my submissions here believing that those who truly wanted to be informed have benefited immensely from both theoretical and practical economics experience of some decades.

chinedu234:
Mr Fowler stated that his FIRS made about #1.1trn through Vat in 2018 and claims that it surpasses the 2012 record of #800bn made under the Jonathan administration. What everyone should simply do is divide both sums by the prevailing USD rates at the different periods. For instance in 2012 Usd was at about #150. In 2018 it became #360(min). When you do the arithmetic the figures that may emerge are $5,333m for 2012 and $3,055m for 2018. If you use the usd value of 2012 to seek the naira value of Fowler's collections for 2018, you will have a sum of about #458.33bn. Whereas the present Usd rate on the 2012 collections would be about #3.96trn. This is how economics thought us.

Thanks for your kind insights.

chinedu234:
Okay. 1. The factor responsible for the fluctuations in forex rate brought about inflation rates which were responsible for the different nominal values of the vat collections. In other words,the underpinning factor of usd is the only acceptable denominator to ascertain estimated values of the collections. Since the government and Fowler were interested in comparing nominal values over time without inputting the impact of other variables (hypocrisy),it became a duty to inform them about the availability of the appropriate economic viewpoint. I rest my submissions here believing that those who truly wanted to be informed have benefited immensely from both theoretical and practical economics experience of some decades.

That's all well and good but before you "rest" your submissions, can you tell me what variables they failed to input when they compared the Tax revenues from both periods? Discerning minds want to know.