dtiBusiness:
I wonder if comprehension is an issue here. The FIRS Boss is saying Kano, Bauchi, Borno and others were not getting fair VAT share of what is consumed in their states, you are here talking about Kano taking alcohol VAT. Kano did not receive vat collected on services rendered by mtn and her likes in Kano and other respective states, nor where they given enough of food that they sell to the nation.
If Northerners should collect vat on food and other agro services don't you know they will realize alot?

But the Southerners consume more of the food, so the southerners will get more VAT from the food and agro services they buy from the North.

PulaPower:
“As we know, 70% of consumption is not accruing to those three states. So, whatever way you look at it, apart from Lagos, Rivers, and FCT, every northern state would benefit. That is the Bill being presented.

“If you look at it, MTN contributed the highest, but because MTN’s head office is in Lagos, all derivation from MTN is accruing to Lagos. With this Bill, irrespective of the economic situation of any state in Nigeria, all states would benefit.”

So why are northern governor’s against the bill?

Ignorance

He noted that the current framework allows Lagos (42%), Rivers (16%), Oyo (5.2%), and the FCT (10%) to take over 70% of VAT proceeds, primarily because the head offices of many revenue-generating companies are located in these regions:

the man is making sense if the VAT proceeds is based only on HQ but tell your GOVERNORS to stop looting and develop their states

honestly, this is where i think this man must be careful.

CodeTemplarr:
Is Kano consuming alcohol when they take VAT from alcohol? That formula is fair enough if we must grow. The north wants VAT shared by consumption but get VAT from what they do not consume presently. How does lagos get rewarded for absorbing the pollution that goes with value-addition(manufacturing)?

VAT should be based on area of consumption. this is where true federalism is needed

REDshouse:
What is VAT.... Value added Tax ..what value is all these states adding to the collective revenue of the country ..aside all companies being headquarters in Lagos, these so called states boast of a viable business hub and economic nerve center of the country, they add more Value to the country compare to other part of the country ... VAT can not be shared evenly, it will make all these states lazy and continue to rely on national cake generated from other viable states for survival
..

Let them also hustle their way to generate more value in revenue to the country so that they can also earn more VAT ..stop spoon-feeding all these States

look at example of MTN again, na only lagos dey use MTN?

epainos:
Lol

I would like to know the qualifications of this man who is talking trash. Lol. I do not have access to data, but I can use my brain. Lagos alone has 30 million residents, accounting for approximately 15% of Nigeria's total population. Because Lagos is the primary cargo terminal, most VAT on all improved goods is levied there. Lol. And we are importing more. This man is very funny na. Very funny man. The majority of Nigerian public servants have nothing in their brains, which is why the country is not functioning properly.

Very sad indeed.

i agree, this chairman should be careful trying to open pandora box. some of those states want to reap where they did not sow instead of developing their states

CodeTemplarr:
The issue is why did MTN and GLO site their main operational bases in Abeokuta and Lagos and not Kano? VAT is meant to reward where value is added an not where value is consumed. If the like let them create a VCT ( Value Consumption Tax) to compensate for spenders.

The reasonable thing is to reward states for value addition so that each state is always looking to attract investors and thus strive to be their best selves in anticipation of Foreign investments. Why do peesidents travel like devils around the globe looking for FDI if there is no local incentive to recieve them? After accommodating every tribe and creating a conducive environment, is it not fair that lagosians who lost their culture and land to Foreign Investors get compensated for giving the foreign investors the atmostphere to thrive. As rich as Delta state is in Oil and Gas, investors cannot survive there because the locals are hostile. Same goes for most of the states and geopolitical zones. It makes little sense to compensate stae govt for what their citizens buy to add value to their lives. It is a service they failed to render the foreign investors that another state has provided that VAT is addressing.

dem wan scatter scatter everything

CodeTemplarr:
The real issue here should be about what constitutes value-addition? Is it the process of taking raw inputs and add value to make them better output or the process of taking output with added-values and consuming them?

Comsumption is not value-addition?

The crooked northerners are only trying to confuse value-addition with consumption so they can start getting more money without suffering polution or hazards associated with actual value-addition process. No more need to poach FDIs again once they get that wish. Lagos can poach FDI, suffer the hazard, sacrifi e their cultural values and land to accomodate Foreign Investors, provide water and electricity, then pretend all of that is detrimental to everyone who consumes the final goods. Thats a recipe for further chaos.

Samunique:
Tinubu high headedness and mis governance will soon be his undoing.

Its clear you never read the content......

Olodo

masterfactor:
Every state on his own, the era of free money is coming to an end, if you want the lion share, improve the IGR of your state. The issue here is that most states governor are lazy and they have nothing to offer, all they are interested in is to go to Abuja and collect federal Allocation.

so every state must have MTN GLO airtel head office abi?why no say every state should control their menieral resources ?you finished reading yet your still abusing others states banks head offices in lagos are there because of position of lagos as former capital of nigeria

CodeTemplarr:
Is Kano consuming alcohol when they take VAT from alcohol? That formula is fair enough if we must grow. The north wants VAT shared by consumption but get VAT from what they do not consume presently. How does lagos get rewarded for absorbing the pollution that goes with value-addition(manufacturing)?

Exactly and I am not even from Lagos nor any of these states. If companies should headquartered their business in a state, it shows that the state is conductive and inviting. Let other states attract foreign investments too so VATs can be accrued to them simple!

Let other states go and work ..no argument over the proposed tax law

Safyqueen:


You cannot even read and comprehend. Who pays the VAT MTN is generating? It is the customers that are spread around the country. By implication some other state has more subscriber base for MTN who actually pays the VAT. Can you now understand?

Which state is viable and conducive for business?
Southwest or Southeast or the North?
You can't eat your cake and have it

CodeTemplarr:
Value Addition is not consumption. Consumption is very different from value-addition.

Lol. May be you should go back for Economic 101 again. VAT is collected on what we consume and that consumption consists of goods and services.

Zooposki:


But the Southerners consume more of the food, so the southerners will get more VAT from the food and agro services they buy from the North.

The consumption refers to where you buy the goods or services. At the point of purchase vat is applied. So when food crops and animals are been purchased from the north, vat (at prevailing rate) ought to be applied.

Policy makers came up with the idea that to make food more affordable, such taxes are abolished on food,education and medicine. Those providing these goods and services are not less productive than those brewing beer which very few consume.

dtiBusiness:


The consumption refers to where you buy the goods or services. At the point of purchase vat is applied. So when food crops and animals are been purchased from the north, vat (at prevailing rate) ought to be applied.

Policy makers came up with the idea that to make food more affordable, such taxes are abolished on food,education and medicine. Those providing these goods and services are not less productive than those brewing beer which very few consume.

My bad, I see what you mean. Brain fart early in the morning, or rather I was confused by the writings of another Nairalander.

This means the majority of the VAT will go to the states where the manufacturers or producers of the items are located, that is, where the value is added.

frog12:
look at example of MTN again, na only lagos dey use MTN?

I can laugh at your yellow teeth you are flashing above. Lol. You want to laugh at me ....lol....but you have just shown the level your brain can assimilate. Mtn vat plus vat on all other good bought in your state that you want to collect same amount Lagos collects can be seen below. Lol. I bet you don't know how to use data. Over 50% business people in Nigeria are in Lagos, and you want to compare the amount Lagosians spend on telephone and Internet services with your scanty state. Lol. You don't understand what data means. Una go just dey talk rubbish with confidence. That FIRS boss is exactly like you. People like you lobby to get positions in public offices, and then, no brain to deliver. Just imagine what a FIRs boss was saying with data he has on his desk. Chai! That guy is exactly you.

VAT generated in states across Nigeria (August 2024)

1. Lagos: N249.77bn
2. Rivers: N70.54bn
3. Oyo: N20.11bn
4. FCT: N18.17bn
5. Delta: N13.09bn
6. Bayelsa: N7.12bn
7. Kano: N4.65bn
8. Akwa Ibom: N4.49bn
9. Anambra: N4.28bn
10. Edo: N4.05bn
11. Ekiti: N3.66bn
12. Borno: N3bn
13. Kwara: N2.89bn
14. Adamawa: N2.59bn
15. Plateau: N2.58bn
16. Benue: N2.56bn
17. Gombe: N2.55bn
18. Kogi: N2.43bn
19. Kaduna: N2.03bn
20. Ebonyi: N1.90bn
21. Taraba: N1.88bn
22. Sokoto: N1.84bn
23. Osun: N1.81bn
24. Ogun: N1.74bn
25. Niger: N1.73bn
26. Yobe: N1.71bn
27. Katsina: N1.68bn
28. Jigawa: N1.59bn
29. Nasawawa: N1.47bn
30. Ondo: N1.45bn
31. Enugu: N1.08bn
32. Cross River: N1.08bn
33. Bauchi: N691.28m
34. Kebbi: N665.17m
35. Abia: N663.42m
36. Zamfara: N432.80m
37. Imo: N235.41m

Total: N44.19bn

<FIRS>
#TheCableIndex

https://x.com/thecableindex/status/1859232836219224189?s=46&t=YoF4K0q-dNG9S6AXfcrqSg

https://www.nairaland.com/8272434/vat-generated-states-across-nigeria#132958929

Zooposki:


My bad, I see what you mean. Brain fart early in the morning, or rather I was confused by the writings of another Nairalander.

This means the majority of the VAT will go to the states where the manufacturers or producers of the items are located, that is, where the value is added.

Mtn services is a major contributor to VAT. Can you explain to me how that is a service offered by Lagos when someone from sokoto makes call to Lagos? Though the call is to Lagos, call charge as well as VAT is borne by the caller who is in Sokoto. I don't think that's difficult to relate with

dtiBusiness:

Mtn services is a major contributor to VAT. Can you explain to me how that is a service offered by Lagos when someone from sokoto makes call to Lagos? Though the call is to Lagos, call charge as well as VAT is borne by the caller who is in Sokoto. I don't think that's difficult to relate with

Sokoto government should take the VAT. If it was a call from Lagos to Sokoto, then Lagos should take the VST.

Zooposki:


Sokoto government should take the VAT. If it was a call from Lagos to Sokoto, then Lagos should take the VST.

Exactly, but that's not what obtains today. It is that injustice that needs to be corrected.

CodeTemplarr:
Value Addition is not consumption. Consumption is very different from value-addition.

You're wrong

ObosiLandlord:
You're wrong

no you are.

CodeTemplarr:
Is Kano consuming alcohol when they take VAT from alcohol? That formula is fair enough if we must grow. The north wants VAT shared by consumption but get VAT from what they do not consume presently. How does lagos get rewarded for absorbing the pollution that goes with value-addition(manufacturing)?

Anything you do not allow to be sold in your state, don't benefit from its VAT.

[color=#000099][/color]

PulaPower:
“As we know, 70% of consumption is not accruing to those three states. So, whatever way you look at it, apart from Lagos, Rivers, and FCT, every northern state would benefit. That is the Bill being presented.

“If you look at it, MTN contributed the highest, but because MTN’s head office is in Lagos, all derivation from MTN is accruing to Lagos. With this Bill, irrespective of the economic situation of any state in Nigeria, all states would benefit.”

So why are northern governor’s against the bill?

Because the devil is in the details

CodeTemplarr:
Is Kano consuming alcohol when they take VAT from alcohol? That formula is fair enough if we must grow. The north wants VAT shared by consumption but get VAT from what they do not consume presently. How does lagos get rewarded for absorbing the pollution that goes with value-addition(manufacturing)?

Whatever makes you think they don't drink in the north is cheap