₦airaland Forum

EasternActivist:
Then is it not the headquarters where the company is domiciled and taxed in a state is the assumed point of consumption?

Not always. If a product is manufactured in Ibadan and was sold to their distributor in Benin, the goods will be invoiced to distributor with VAT (here, the manufacturer will deduct the VAT on material Input from the VAT on sales to the distributor, the difference will be remitted to the FIRS, oyo state office)
To the distributor in Benin, the VAT on goods bought from the manufacturer will become input VAT. He sells to the retailers or consumers with VAT, which now is his own output VAT. He will deduct the input VAT from his own output VAT and the difference will be remitted to FIRS, Edo state office)
Note that VAT is not remitted or paid to the purse of any state government, but only to the federal government thru FIRS.

bentenny:
Head or tail,U were born without a functioning brain hence the gradual st.upi.dity displayed on a regular basis here!
Embrace it with ur skeleton exposing chest and stop denying it because just like peak milk,it's in U😂😂
Community clo.wn and malnourished mo.ro.n!😛

Are you talking, crying or singing your dirge? Better craw back to you osu cave quietly. Fagggøt!

ZombieDredd:
It must happen in SW, if you like cry

You're crying already, because every notable individual and organisation in Yorubaland have spoken against it and all the SW governors have rejected it outrightly.

bentenny:
🥱🥱
Another pathetic repetition from a village stammerer and a community clown!
Of course U did copy and paste nah from ur illite.rate WhatsApp group admin😆😆
Indeed,two empty heads are worse than coomcoom🥱😂

Head or tail, osu ëvil forest is your ancestral heritage. Embrace it with your full chest and stop dodging it. Sickly orangutan!

christopher123:
the type of education they dish out in that una SW schools are terrible! VAT for Christ sake is consumption tax...I can't believe that people can be this shallow


High Value Added Tax (VAT) does not necessarily mean high production because VAT is a consumption tax, not a direct tax on production. Here’s why:

1.VAT is a Consumption Tax VAT is levied on the value added at each stage of the supply chain, but it is ultimately borne by the final consumer. High VAT rates increase the cost of goods and services for consumers, but they do not directly incentivize or disincentivize production. Production levels depend more on factors like demand, technology, labor, and capital investment.

2. Impact on Demand: High VAT can reduce consumer purchasing power, leading to lower demand for goods and services. If demand falls, producers may reduce output, which could lead to lower production levels rather than higher ones.

3.Production Costs vs. VAT Production costs are influenced by factors such as raw materials, labor, energy, and technology. VAT does not directly affect these costs. Even with high VAT, if production costs are low due to efficient processes or cheap inputs, production can remain high.

4.Tax Burden Distribution: In some cases, businesses may absorb part of the VAT to remain competitive, which can squeeze profit margins but not necessarily reduce production. Alternatively, they may pass the full burden onto consumers, which could reduce demand and indirectly affect production.

5. Economic Policies and Incentives: High VAT might be part of a broader tax system designed to generate government revenue. If the government uses this revenue to invest in infrastructure, education, or technology, it could indirectly support higher production in the long run. However, this depends on how the revenue is utilized.

6.Global Competition In a globalized economy, high VAT in one country might make its products less competitive internationally, potentially reducing exports and production. Conversely, countries with lower VAT might attract more investment and production.

7. Informal Economy High VAT rates can sometimes encourage the growth of the informal economy, where goods and services are traded without VAT being collected. This can distort production statistics and reduce the effectiveness of VAT as a revenue tool.

In summary, high VAT affects consumption and pricing rather than directly influencing production levels. Production is more closely tied to factors like demand, input costs, technology, and economic policies.


But to make you feel good....HIGH VAT means that you are producing fantastically...if that makes you feel go..so be it


Ignorance is bliss

Mr man, stop arguing blindly. Consumption doesn't mean when you munch okpa in your mouth only. Let me school you a bit:

As a manufacturer, all the raw materials, w-I-p, spare parts and other components you bought from the suppliers are paid with VAT element (this is called input VAT). When you used any of these for production purposes, it is consumed already. Those goods you produced are sold to your customers with VAT element (this is called output VAT). At the end of the month, the calculated VAT input (raw materials, WIP, components) you consumed on production is deducted from the VAT out on finished goods sold to your customers. The difference (when VAT output is higher than VAT input) is what you remitt to the FIRS (FGN)
The more your Consumption both at raw mater or Finished goods stages, the more yor VAT payable.

There is no organisation that is involved in legal manufacturing/production/value addition that will not register with CAC and other regulatory bodies. There is no way a registered company can evade VAT. You must file your annual returns. Tax authorities can trace all your inputs (RM, WIP, spare parts, equipment etc either imported or local) to your business without even engaging you. A single tax audit of your suppliers or customers can reveal this.

Don't think that anybody is manufacturing in the SE and evades VAT. It is either they engaged in VAT exempt items (eg pharmaceutical, LPG/CNG gas, medical services, baby products, sanitary wares, basic food items, educational materials etc) and all these are more pronounced in the SW than SE
OR you are talking about those concocting adulterated hennessy, champagne, drụgs etc inside latrins in onitsha, aba etc.

christopher123:
Go and pay VAT on Iya Biliki Amara joint at Bodija Ibadan....tell me how you can pay VAT on a plate of food there ..yes she is producing good but you can't pay VAT on this

If you get this simple anology then you will understand while tons of people producing goods in Aba that you erroneously call IBO MADE that you buy in Lagos can be made to pay VAT cos they aren't captured

Iya Bili Amala joint line of business is exempted from VAT. But if you consumed a bottle of beer in iya biliki alamala joint, you have already paid VAT because iya biliki bought those beers VAT inclusive from the distributor and you the final consumer bear the cost. The distributor must remitt the VAT element to the FGN. This is being monitored from the manufacturer (the brewery) down the supply chains.

Ifybwoy:
Yorubas are cowards.

Even IBB said it 🤣🤣

"If I am sleeping and I hear the Yorubas beating the drums of war, I would go back to sleep"(**IBB**).

Your lord and savior Nnamdi Kanu said more than this ............that he would enter Abuja and bring Buhari's head in a calabash, that Nigeria would burn down.......but you know what?........it was a common Jubril from Sudan that bungled him from Kenya to Nigeria inside a Ghana-must-go sac..........today, he's celebrating his 4th year he was turbanned as eze ndikuje gburugburu 1 by uncircumcised fulanistines

OkpaNsukkaisBae:
Looking at the cases of ritual killings in the SW, I think Sharia Law will go a long way in eradicating such criminal murderers

How about taking it to the SE where ritual kíllings, drụg biz, baby factory, fake products and other vices are more common?

ZombieDredd:
You go weep till forever.

Sharia must be implemented and nothing you go do.

Sharia can only be implemented inside your anụs and not anywhere in SW.

AbuTwins:


Just as you all accepted Sukuk and Islamic Banking when it benefits you, you'll also accept this.

If na Shari'ah we dey use all those Governors that were jailed for fraud/theft and later pardoned will have no hands by now!

How many corrupt Governors ministers, commissioners, LG councillors, chairmen etc has your sharia punished in Zamfara, Kano, katsina, borno etc apart from flogging and amputating you gullible poor and downtrodden? The best gift sharia can afford you is banditry and bokoharam.
poor

DeLaRue:
Anyone realised that none of the Governors have fortrightly said the proposed Arbitration panels are illegal.

You know why?

The State Attorney Generals will have advised the Governors to be cautious. As there is nothing in the Constitution that prevents people voluntarily submitting themselves to a non-State dispute resolution mechanisms.

In law, it is called Alternative Dispute Resolution. It is even encouraged.

Afterall from time immemorial family heads, Village heads, Pastors, Imams have sat on and resolved disputes brought voluntarily to them by peopl.

Any sitting where 2 or more people are hearing and mediating a dispute is a panel, whether the panel is made up of village, family or religious leaders.

If the Muslims go to court, they'll win, provided they don't use the words 'Sharia Court'.

The Governors must know they have no legal legs to stand on, but they are compelled to issue wishy washy warnings because most SW people oppose anything Sharia, and that includes most moderate Muslims.

This fight is for the SW people. They must not rely on the Governors to fight for them.

Under the Nigerian constitution, a Sharia Arbitration panel can be set up anywhere in the country. It is for people who don't want it in their area to fight it.

In that case, it should remain in their bedrooms or whatever closets they share. If not for ulterior motives, why all the publicity, launching, invitations etc.? Head or tail, no room for sharia in the SW.

christopher123:
Keep taxing yourselves and be send the money down...it's a task you must do .

It's a generational task

VAT is not controlled by your local or state government. Low VAT in the SE means low production and low consumption. If you bought common tom-tom you have automatically paid VAT. If you produced and sold common biscuits, you have automatically paid VAT. It is not negotiable.

ariesbull:
do you know that many companies in Lagos don't have signpost of their companies in Lagos ...and they hide their operations

Do you know why? They don't want their taxation which is too much. Go to East ,you see companies putting up their billboards and signage confidently cos they know they aren't overtaxed

VAT is different from all those demand notes, rates and locally imposed taxes by the state snd local governments.
VAT is being controlled by FGN and there is no way you can evade VAT except you are into illegal production and your business/office is not registered.

bentenny:
🥱🥱
What a tasteless and colourless clapback from a glorified sycophant and a certified clown!
This regurgitated comment is a classic example of ikorodu copy and paste😆😆
Is that all U and ur analphabetic minions from d trenches could hilariously and pathetically muster after shamelessly disappearing!
Too predictable!🥱
Too bad that I expected more from a comcom brain!🤐

Keep repeating the same lines of your tomfoolery.
You must embrace your heritage - Osu evîl forest, your final abode.

bentenny:
😆😆
It's only a glorified illiterate and sycophant who still ignorantly believes Lagos is the only state where everyone resides!

From the osu evïl forest you came from, to the osu ëvil forest you must return. Selah.

Proudlyngwa:
What has Palestine hero got to do with Zionist land grabbing.
What qualifies someone to be a hero.
How is yassar Arafat a hero
Do you even know Arafat.

Stop being brainwashed by Western media

You claim a land belongs to your ancestors and you cannot mention the name of that your ancestors. You deserved to be säcrificed to the gods of that land.

CoronaVirusPro:
Just look at how you embarrassed yourself!

Jesus was not a Jew. He was a Palestinian.

May be "Jesus" you worship in your bedroom

mrvitalis:
Migrant in the same country? Lmaooo when you people are ready restructure the country along ethnic lines let's see

I thought you were biafrans, while others were zoogerians?

MadamExcellency:
How did changing the location of the bankrupt factory to the East and transferring the profitable one to the Southwest any plus to multinationals than usual ethnic politics in Nigeria?

After the civil war, the indigenization policy of multinationals started, and it was done just after the end of the civil war when the Igbos had nothing, no money at the bank, all infrastructures were bombed, and the region was a shadow of a graveyard.

Igbos couldn't buy shares; hence Yorubas dominated.

The most conducive region for siting industries is in Eastern Nigeria, but Yourbas controls most Government Offices in Nigeria and uses feasibility studies to cancel a selection of Southeast for multinationals.

I am speaking as a senior citizen who knows cooperate Nigeria and the politics of division. The policy of no federal presence in the Southeast is deliberate, not a coincidence.

Even b4 the civil war, how many factories were there in the SE compared to SW? The first set and most flourishing Industrial Estates are scattered all over Lagos, Ibadan (Oyo) and Ogun states right from b4 Nigeria independence.

MadamExcellency:
You don't know anything about the politics of siting industries in Nigeria. Let me give you a small tutorial. Unilever (Lever Brothers) use to have three factories in Nigeria, Apapa later Oregon, Agbara and Aba. Apapa manufactures Detergents and personal cares, Agbara - Foods while Aba manufactures Soaps but it happened that Detergents especially Omo wasn't making any profit for 15 consecutive years and the talk of closing the Detergents factory started. You know what? The Yoruba directors and Executives decided to carry the Soap factory to Apapa and then brought the Omo factory to Aba, that in the invent of closure, the Aba factory will be gone. That's one instance, I have many of them and know the politics behind industrialization in Nigeria but the children on Nairaland wouldn't allow us to teach them out of our vast experience without throwing tamper tantrums and insults.

If what you're saying is true at all, it's called Corporate Governance. The major shareholders decide whatever they want with the business, including siting of factories, H/O etc. The majority shareholders are the real owners of the business.

History555:
Just as your region has been living off Niger Delta wealth for decades yet Niger Delta are not opening threads on how they feed Nigeria but Yoruba wants award for vat collection. Spits

SW and SS feeding the whole of the country, with SE as major beneficiary of the feeding bottle.

mrvitalis:
bro it's not economi survival it's economic opportunity

People only spend money on things they are too lazy to do or ignorant about
Business minded people would always move to places filled with lazy or ignorant people to make easy money

Please tell Tinubu to pass the tax bill abeg... So I can move my head office to owerri abd avoid massive VAT

Intelligent businessmen move to areas with good purchasing powers like SW. If you move your business to an area full of lazy people, your business is heading for bankruptcy (lazy people are bad debtors and not credit worthy) and it shows you're a däft businessman.

THEDEEPSIGHT:
I hope people who support Israel's genocide in Gaza can finally see how ethnic cleansing works.

Arabs/muslims did something similar and even worse in past in the north and other parts of Africa centuries ago.

CoronaVirusPro:
Who told you Israel is a Christian country? stop imbibing that narrative. It’s a propaganda.

Let me enlighten you more, there are more Muslims in that apartheid state than Christians. Jews don’t believe in Jesus. They detest and persecute Christians too but the media won’t show you.

It’s a norm for the false Jews to spit on Christians.

It doesn't change the fact that Jesus Christ was born a Jew and lived in the land of present day Israel. All the symbols of Christianity are everywhere in Israel eg Church of Nativity, Mount Olive, Mount of transfiguration, the empty tomb, garden of Gesthsemane, sea of Galilee, rivet Jordan where Jesus was baptised. No true Christian will not want to defend the land. While those claiming fake ownership will want the land destroyed.

Proudlyngwa:
Hypocrisy of the highest order

Now I know Trump is truly and fully a mad man.

I don't blame him, I blame China, Russia, India, Saudi Arabia.

Relocate people from Thier land, because some land grabbers are butchering them.

And you want to chase out illegal immigrants.

Hopeless Trump.

Na impeach Dem go impeach u laslas

Can you mention any Palestinian hero or ancestor with a tie to the land that you know? May be the oldest you could get is Yasser Arafat who was an Egyptian born in Egypt but suddenly became a Palestinian.

Majority of the Palestinians ancestors migrated from Egypt, Jordan, Syria etc. Even their greatest heroe ever, Yasser Arafat, was an Egyptian born in Egypt.

flokii:
This is patt of the reason South West is not progressing.. imagine contributing the highest (over 3 trillion), yet getting the least (just 27.4%), not even up to 1 trillion.
Whereas a region that contributed least is getting the highest (337.8%).

Useless system we are running in this Nigeria... robbing Peter to pay Paul.

Robbing SW to pay SE

bentenny:
Sound ke😂😂
Are we now using audio or just typing?
A glorified beggar like U should accept his career with his full chest! 😁😁

We will soon dispatch you back to your barren enclave. We need our sanity back here.

bentenny:
If I dey do Hawking,nah better hustling nah....e better pass U way don turn bambiyala for social media....shameless beggar😂

Keep exposing yourself here. You truly sound like one of those online beggars. Ndi ayiyo.

bentenny:
Free what?
😂😂
Lagos is doing free education yet verifiable stats clearly states that there were over two million 'out of school children'😂😂
It seems you were not informed😆😆
If there was free education like you are ignorantly claiming,you won't be doing waterside night school😄

The dilapidated and muddy depiction you are painting is an replica of the former and present status of your combined schools in your life...little wonder why you still had to resort to attending night school as you were having doubts over the 'oluwole' certificates given to you😄

Osu, ndi ayiyo. Go hawking.

Lordbinsmar:
Honestly, Germany is a stupid country. I don't understand their romance with Islamic lunatics.

Dem dey dash these pipu visa anyhow

So also the UK and France.

Botragelad:
We tried to warn you, but you wouldn't listen! These so-called fake 'asylum seekers' are nothing but terrorists in disguise. Germany and the rest are bent on self-destruction at this point.

First, it's a stabbing by a Muslim tourist in Israel, now in Germany, an Afghan murderer kills a 2-year-old kid and an adult. What's the point of importing all these folks? Are you afraid of being called racist or Islamophobic? Haha. Well, their values are completely at odds with those of Europe!

Deport them back to their hole, it's pretty simple. Diversity, equality, inclusion and other woke nonsense has to stop. They don't fit in.🤮🤮

They want to be politically correct. I pray they won't sorrowfully pay for it with their blood.