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Why VAT And Taxes Don’t Define Development! - Politics (6) - Nairaland

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Re: Why VAT And Taxes Don’t Define Development! by 43Ronin: 7:11pm On Jan 27
Kay25:

Same way igbos do sit at home on Mondays and kill each other's..ode
Rogue elements/criminals are everywhere not just igboland. It's part of life. However in yorubaland you guys cannot leave together. You segregate yourselves according to religion & tribe and have ego issues which blinds your judgment. E.g yoruba Muslims stopped yoruba Christians from voting in lagos because of Peter Obi. yoruba Muslims often oppress and try to destroy traditional worshippers; they are also pushing sharia against the choice of the majority. These issues are not abound in igboland and nigerdelta because majority oft the people are christains and most nigerdelta state are basically ethnic states like SE. E.g Bayelsa & half of rivers is majority Ijaw. Etc. You guys are heavily tribalistic with no igbos you would turn on yourselves
Re: Why VAT And Taxes Don’t Define Development! by christopher123(m): 7:22pm On Jan 27
ObosiLandlord:
Alright... We will keep on feeding you but we won't let anybody from the parasitic region rule Nigeria.

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

It's a generational task

1 Like

Re: Why VAT And Taxes Don’t Define Development! by Gboom: 8:32pm On Jan 27
ariesbull:


It's so unfortunate that I will descend this low to engage you



VAT (Value Added Tax) is closely tied to consumption, not productivity.

This is because VAT is applied to goods and services at every stage of their journey—from production to the final sale—but the ultimate responsibility for paying it lies with the end consumer. It’s essentially a tax on what people buy, not on how much businesses or individuals produce.

While businesses play a role in collecting VAT, they’re not directly taxed on their productivity. Instead, they offset the VAT they’ve paid on their inputs (raw materials or services) against the VAT they collect on sales. This ensures that only the added value is taxed, making it fair and focused on consumption rather than production.

In simple terms, VAT is all about what we use and consume, not about how much we create.

Stop displaying ignorance

1 Like

Re: Why VAT And Taxes Don’t Define Development! by kedeojo(m): 8:47pm On Jan 27
Standing5:
Can the north produce a quarter of what they do if not supported by over N1Tr from SS?
Have they not be producing and agriculture which was Nigeria mainstay before the discovery of oil was majorly cultivated by Northerns.

1 Like

Re: Why VAT And Taxes Don’t Define Development! by Whois(m): 10:34pm On Jan 27
YouAreNobody:


This is the nonsense you guys keep telling yourselves. Aside Lagos, which other state in the SW can be compared to the states in the SE in development? Is it Ondo state? abi Oyo? or is it Ogun? Or Osun?

lolz....yoruba wink

Yen yen yen. So am now your enemy cuz I am being honest. Anyways you should Continue lying that SE is developed o. No Vex
Re: Why VAT And Taxes Don’t Define Development! by GBTYO: 2:02pm On Jan 28
Mandate1:
3 out of 5 South Eastern states are part of the Niger Delta. So what are u talking about?

Geographically but not culturally.

The Niger Delta can be limited based on the Niger Delta drainage basin which Cross River and Edo are not part of but includes states like Imo and Abia in the SE.

Culturally speaking the Niger Delta area consists of the 6 SS geopolitical zones.

When I refer to the Niger Delta , I refer to the cultural area known as SS.

Abia and Imo no join.
Re: Why VAT And Taxes Don’t Define Development! by cornelin(m): 2:42pm On Jan 28
GBTYO:


Geographically but not culturally.

The Niger Delta can be limited based on the Niger Delta drainage basin which Cross River and Edo are not part of but includes states like Imo and Abia in the SE.

Culturally speaking the Niger Delta area consists of the 6 SS geopolitical zones.

When I refer to the Niger Delta , I refer to the cultural area known as SS.

Abia and Imo no join.

Which one is cultural Niger-Delta? When you make public comment, it is better you connect your sense to your brain...
Re: Why VAT And Taxes Don’t Define Development! by GBTYO: 2:47pm On Jan 28
cornelin:


Which one is cultural Niger-Delta? When you make public comment, it is better you connect your sense to your brain...


By cultural, I mean the people who are not ibos and want nothing whatsoever to do with ibos.
Re: Why VAT And Taxes Don’t Define Development! by cornelin(m): 3:31pm On Jan 28
GBTYO:


By cultural, I mean the people who are not ibos and want nothing whatsoever to do with ibos.


Culturally,. The SE share similar culture with the people of your so called 'SS' compared to state like Edo. There are even Igbo speaking tribe in your so called 'cultural Niger-Delta'.
Stop all these shenanigans..
Re: Why VAT And Taxes Don’t Define Development! by kinguwem: 4:20pm On Jan 28
GBTYO:


That's SS to complain and not you.

Besides when SS were doing their agitation for resource control your SE politicians sided with the north against their demands and at no time did SS ever call for your help in their agitation.

SS will be ok of we get 50% but we know that you ibos will align with same north you have been castigating to oppose true restructuring.


When this VAT and Tax reform thing started , I stated categorically why SE will oppose it and it was down to the fact that you earn far more than you contribute from federal handouts.

When Lagos and Rivers secured a joint vat ruling to stop the FG from collecting VAT and successfully argued that it wa a responsibility of states to do so, your governors in the SE were all silent.


Now breeze don blow fowl yansh.
The SE political zone has unexploited economic potentials because of poor political leadership and an unstable political structure. It's sad that despite it's economic potentials, it depends on statutory allocations & revenue generated from VAT in other zones as major sources of government revenues. Despite the commercial activities going on there, it's obvious revenue generated doesn't get to the government treasury. The elites are major beneficiaries of the skewed National political structure while the common man believes their fate lies in Biafra which will involve coercing the Niger Delta states into an Igbo dominated Nation for it to be viable economically.
Re: Why VAT And Taxes Don’t Define Development! by Mandate1: 9:33pm On Jan 28
GBTYO:


Geographically but not culturally.

The Niger Delta can be limited based on the Niger Delta drainage basin which Cross River and Edo are not part of but includes states like Imo and Abia in the SE.

Culturally speaking the Niger Delta area consists of the 6 SS geopolitical zones.

When I refer to the Niger Delta , I refer to the cultural area known as SS.

Abia and Imo no join.
you're the one differentiating this based on what you think and not what is. Niger Delta in Nigeria refers to the oil producing states.
Re: Why VAT And Taxes Don’t Define Development! by Brenbentondiaz: 10:13pm On Jan 28
You forgot to put the main reason, which is that the SE doesn't contribute to it. Everyone knows if the SE had topped the list for VAT and IGR you absolute tadpoles will never allow us to hear word with "we igbos are the wealthiest in Africa. That's why we can pay tax. Others are poor".
Re: Why VAT And Taxes Don’t Define Development! by Brenbentondiaz: 10:21pm On Jan 28
History555:
Sw should tax themselves more
Se should pay less vat
We shall all share the sw tax
God bless the sw as they pay more tax for sharing grin grin

Yeah that's true. I like the fact you're happy your region is a beggarly, parasitic region. At least you won't have the mouth to be calling the north parasites (I doubt you'd stop, though. You guys generally lack shame and selfawareness).
Re: Why VAT And Taxes Don’t Define Development! by Brenbentondiaz: 10:23pm On Jan 28
christopher123:
lol

They decided not to over tax themselves doesn't make them parasites

So, it's states that tax VAT. Igbos. Smh.
Re: Why VAT And Taxes Don’t Define Development! by Raf4: 10:40pm On Jan 28
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.
Re: Why VAT And Taxes Don’t Define Development! by Raf4: 10:47pm On Jan 28
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.
Re: Why VAT And Taxes Don’t Define Development! by GBTYO: 12:07am On Jan 29
Mandate1:
you're the one differentiating this based on what you think and not what is. Niger Delta in Nigeria refers to the oil producing states.

Niger Delta nor SS is not Ibo.



Get that straight now and hold your lane.
Re: Why VAT And Taxes Don’t Define Development! by christopher123(m): 7:43am On Jan 29
Raf4:

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.
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
Re: Why VAT And Taxes Don’t Define Development! by christopher123(m): 7:45am On Jan 29
Raf4:


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.

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
Re: Why VAT And Taxes Don’t Define Development! by Mandate1: 10:28am On Jan 29
GBTYO:


Niger Delta nor SS is not Ibo.



Get that straight now and hold your lane.
you and who dey drag?
Re: Why VAT And Taxes Don’t Define Development! by Raf4: 11:18am On Jan 29
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.
Re: Why VAT And Taxes Don’t Define Development! by Raf4: 12:04pm On Jan 29
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.
Re: Why VAT And Taxes Don’t Define Development! by EasternActivist: 12:40pm On Jan 29
Raf4:


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.

Then is it not the headquarters where the company is domiciled and taxed in a state is the assumed point of consumption?
Re: Why VAT And Taxes Don’t Define Development! by ashrafaliimran: 6:10pm On Jan 29
Mathew Ojo makes a strong case: development thrives on good governance, entrepreneurship, and resource management, not just taxation. The Igbo states and global tax havens prove this. Whether in Nigeria or handling Toronto bookkeeping, financial efficiency matters more than high taxes for real progress.
Re: Why VAT And Taxes Don’t Define Development! by Raf4: 7:34pm On Jan 29
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.
Re: Why VAT And Taxes Don’t Define Development! by EasternActivist: 8:18pm On Jan 29
Raf4:


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.

Companies file tax remittance from their headquarters. Go and ask
Re: Why VAT And Taxes Don’t Define Development! by Raf4: 8:54pm On Jan 30
EasternActivist:


Companies file tax remittance from their headquarters. Go and ask

I told you their distributors, retailers, customers etc who are separate corporate entities on their own.
Re: Why VAT And Taxes Don’t Define Development! by EasternActivist: 9:25pm On Jan 30
Raf4:


I told you their distributors, retailers, customers etc who are separate corporate entities on their own.

Seriously do I have to be the one to remind you that VAT is already paid at the distribution stage? Distributors, retailers, and customers buy the product with VAT included, and each stage in the supply chain charges VAT until it reaches the final consumer which they don't have to remit again."
Re: Why VAT And Taxes Don’t Define Development! by Caseless: 3:38am On Jan 31
EasternActivist:
Op they know this, they just want to gaslight the southeast.

Upon all their high vat collected and generated it's expected that ibadan should purge it self of brown roofs retardation unlike what Is obtained in southeast.
Ibadan is a better place than most places in the east.
Re: Why VAT And Taxes Don’t Define Development! by EasternActivist: 6:14am On Jan 31
Caseless:
Ibadan is a better place than most places in the east.

Joke of the century

There is no where you can boast of that ibadan is better than in the east.

Even the villages in the east have good habitable settlement with basic infrastructure
Re: Why VAT And Taxes Don’t Define Development! by Raf4: 1:32pm On Feb 01
EasternActivist:


Seriously do I have to be the one to remind you that VAT is already paid at the distribution stage? Distributors, retailers, and customers buy the product with VAT included, and each stage in the supply chain charges VAT until it reaches the final consumer which they don't have to remit again."

Go and argue that one with any distributor or major retailer you know. They school you about their experience with FIRS tax audit. There's a reason for input VAT and output VAT.
Re: Why VAT And Taxes Don’t Define Development! by MrGerald(m): 6:37am On Feb 02
helinues:
They can never ever take responsibility. Just because the records indicated that a particular region VAT collection is the lowest, they have resorted to blaming game, goal post shifting.

A state with low VAT collection means that state is unproductive

These are the same people who claimed foreign investment is bullshit, now that the VAT collection have exposed their unproductivity, they want to be coming up with as usual flimsy excuse
You that with high vat what do you got to do with it? You're expecting me to pay to naija govt in return for what? Again SE people in other regions are also contributing to their vat assuming they all pay in SE you'd notice the difference

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