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Nairaland Forum / Nairaland / General / Politics / Why VAT And Taxes Don’t Define Development! (8120 Views)
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Re: Why VAT And Taxes Don’t Define Development! by 43Ronin: 7:11pm On Jan 27 |
Kay25: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: 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:Stop displaying ignorance 1 Like |
Re: Why VAT And Taxes Don’t Define Development! by kedeojo(m): 8:47pm On Jan 27 |
Standing5: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: 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: 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: 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: 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: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: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: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: 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: 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: 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: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: 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: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: 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:you and who dey drag? |
Re: Why VAT And Taxes Don’t Define Development! by Raf4: 11:18am On Jan 29 |
christopher123: 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: 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: 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: 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: 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: 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: 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: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: 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: 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: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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