VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria - Politics - Nairaland
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| VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by cocolacec(m): 10:29am On Sep 06, 2021 |
Analysts: Lagos Major Beneficiary of Rivers Court Ruling on VAT, Responsible for 70% of Collection Across Nigeria editorAugust 11, 2021 12:46 Am Nume Ekeghe Following the ruling by a Federal High Court sitting in Port Harcourt, Rivers State, stating that Rivers State Government should collect Valued Added Tax (VAT) and Personal Income Tax (PIT), analysts have noted that Lagos would be the major beneficial of this ruling. Fiscal Policy Partner and Africa Tax Leader at PwC Mr. Taiwo Oyedele, in an interview with THISDAY, noted that the practice of the federal government collecting VAT and PIT on behalf of states has been an ongoing practice since states didn’t have the capacity to collect personally. However, he pointed out that with the complexities involved in collecting VAT state by state, the FG will allow the ruling to stand. Oyedele added that if states collect personally, Lagos state would be the major beneficiary of the ruling adding that 70 per cent of VAT collected nationwide are of Lagos origin. He said: “Based on the constitution, consumption tax belongs to the states and I don’t think that anyone is debating that. So, what happened in 1993 when the VAT law was introduced was the understanding that the Federal Government (FG) had the capacity to collect. At the time, even Lagos state did not have the capacity to collect. So, FG was only collecting on behalf of the state and then keeping a percentage of the state to cover the cost of collecting. So, we can debate on whether the percent is high or not and that is why they only keep 15 per cent and 85 per cent goes to the states and local governments.” “We have also had different cases in the past including up to the Supreme Court which was between Lagos state and Federal Inland Revenue Service (FIRS) and it was a debate between VAT and consumption tax. And the Supreme Court said VAT law has covered the fees and therefore Lagos state should not introduce consumption tax. Now even though this is not the same, but they are related. I”f you think of a law like personal income tax, it is a state tax and no one is debating it with them to collect it but the law was centrally enacted. So, a way, I see VAT playing out the same way. Centrally enacted maybe at some point states would collect it themselves but at the moment, FIRS is collecting on their behalf, ”he said. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by cocolacec(m): 10:32am On Sep 06, 2021 |
At the moment, he said the hopeful winner from the latest development would be Lagos state. “I don’t think any other state would make more money as of today from collecting their VAT than what they are sharing from the Federation. The reason is very simply, there is customs VAT that is collected by customs on behalf of FIRS, and that accounts for somewhere around 12 to 15 percent of VAT and that is a VAT no state would be able to lay claims too. Also, maybe 60 to 70 per cent of the nation’s VAT is generated in Lagos. This means all the other states are barely contributing 30 per cent.” He noted that if this enacted some states would then state to reconsider adjusting VAT collection as well as ask companies to register operations in different, which in entirety would be cumbersome He said: “This is a judgment of the Federal High Court and I don’t think any state would want to implement it. You expect there would be an appeal to court of appeal and then Supreme Court. This is a major issue so I don’t think anyone would allow it stand at this level were it is. So, the reality is that I would not be implemented now, it would still be under appeal and I don’t know how many more years that would take.” “Today, VAT is somewhere around N1.5 trillion TO N1.8 trillion a year. About 12 to 15 per cent of that is collected at the border by customs and no state can collect at the border, it still has to be the federal government. And VAT you would get from the border from imports is not very different from what is gotten form the VAT pool. So, the impact on federal government would be negligible and Lagos state would make five times what they are getting from VAT and they would be the winner from this. Many states from the North would have almost nothing to collect. Some sates like Rivers, Ogun maybe they would be balanced because they have g good number of VAT within their states but more than 30 of the 36 states would be far worse off if the judgment is implemented.” https://www.thisdaylive.com/ 2 Likes |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by kayusely70(m): 10:37am On Sep 06, 2021 |
The states should be allowed to collect it! 1 Like |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by triple996(m): 10:39am On Sep 06, 2021 |
When this country is ready for restructuring. Lagos should be divided into two separate states. Then kano,rivers, kaduna,delta and ibadon(possibly anambra) should be allowed to remain as states while all others should be merged in twos or even threes because they are just useless and a burden to the country. 2 Likes |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Nobody: 10:39am On Sep 06, 2021 |
When will the LASG follow the footstep of the RSG and start collecting VAT. I hope the LASG will inject most of it into developing Infrastructures all around Lagos, especially on rehabilitating more roads. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Nobody: 10:40am On Sep 06, 2021 |
triple996:Lagos can't be divided. There is no sane reason for it to be divided. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by SarkinYarki: 11:19am On Sep 06, 2021 |
Lagos might be the highest govt collector visible point but seventy percent of VAT is not borne 70 percent by Lagos state please. except we are saying Lagos state consumes 70 of services and goods consumed in Nigeria .. We must be careful about the wishy washy analysis of VAT collection before we start robbing peter to pay Lagos 3 Likes 1 Share |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Nobody: 11:34am On Sep 06, 2021 |
Lagos should guarded from hateful eyes of developers.... They wished Lagos was their land.... Hehehe |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Arnold1(m): 11:42am On Sep 06, 2021 |
triple996: Lagos state can never be divided. Forget that thought. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by myobjective: 12:51pm On Sep 06, 2021 |
SarkinYarki: All available data shows that Lagos contribute close to 70% to the centrally collected Vat. Lagos needs this money to build infrastructure that is been stretched by all these economic activities and should not be sharing it with the 13 States in the core north. 2 Likes |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by SarkinYarki: 12:53pm On Sep 06, 2021 |
myobjective: From the point of pressure on Lagos infrastructure I agree ... |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Parisian: 4:51am On Sep 07, 2021 |
Please stop lying... The official data shows 55% and even when the news hit FP some days ago, it was 55% that was clearly stated in the OP... myobjective: |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by seborrhic: 5:16am On Sep 07, 2021 |
SarkinYarki:The so called expert was just going round in circles. I don't think he honestly understands vat and how it is paid and collected,if not he would not have put up the disgraceful analysis he gave. 1 Like |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by seunmsg(m): 6:01am On Sep 07, 2021 |
Exactly what I said when the matter first came up, Lagos will be the biggest beneficiary of the judgement if it stands. At least Lagos should be looking at between N700-N900 billion annually from VAT alone. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Maxymilliano(m): 6:04am On Sep 07, 2021 |
I wondered what will he the fare of non productive states like Ekiti, Kebbi, Jigawa, Yobe etc if the court ruling is allowed to stand 2 Likes |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by yemmight(m): 7:20am On Sep 07, 2021 |
Good for Lagos. They woke after Rivers. 1 Like |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Obagreatdatoye(m): 7:25am On Sep 07, 2021 |
Lagos will be much more greater with this 1 Like |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Tinubuadvocate: 7:42am On Sep 07, 2021 |
The country is systematically restructure. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by SarkinYarki: 7:56am On Sep 07, 2021 |
Maxymilliano: When it comes to VAT no state is non productive...VAT is not a production tax but a consumption Tax ..All states consume goods and services 1 Like |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Nobody: 8:00am On Sep 07, 2021 |
Tinubuadvocate:in all ramifications, the current structure is outdated |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by SweetiliciousD: 8:23am On Sep 07, 2021 |
The danger of concentrating economic activities on a singular location. Fiscal federalism is here, the dreaded restructuring that BUhari doesn't know what it is all about. Lagos and rivers will legally interpret fiscal federalism to him. You can't dis-centealize VAT, Gold mining and other solid mineral mining right and still centralize oil mining right. The zoo is crumbling.... Biafra is here. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Ovamboland(m): 9:02am On Sep 07, 2021 |
myobjective: Why are you particular about 13 core north states? What is Taraba, Benue, Kogi contribution to VAT? What of Ekiti, Imo, Osun, Enugu, Cross river, what do they add to VAT? 1 Like |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Ovamboland(m): 9:06am On Sep 07, 2021 |
So most developer state of origin have no capacity 27 years ago to collect VAT. After 22 years of democracy they still could not develop that ability. No wonder they disguise their envy and hate for Tinubu who developed Lagos capacity to raise taxes as activism. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by myobjective: 9:19am On Sep 07, 2021 |
Ovamboland: Yorubas in Lagos will gladly share their VAt with Yorubas in Osun, Ekiti and Kogi west. For the rest of the parasitic state you mentioned above, we don't care. You can see Obasa talking about other southwestern states. We're Yorubas we care about our brothers who not as fortunate as us. 8 Likes 2 Shares |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Ballmer: 9:24am On Sep 07, 2021 |
Maxymilliano: Ebonyi too. 2 Likes |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Nobody: 9:28am On Sep 07, 2021 |
DubaiLandLord: My thoughts too. Divided for what? Same Lagos that is the smallest State in Nigeria? Illogical geographically or in a socio-economic sense. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Nobody: 9:34am On Sep 07, 2021 |
Ovamboland: Simple. Nigerians are a hateful people. Those who are not hateful are very envious and have little goodwill for others. Bad belle in short. Rather than learn from Tinubu, when the template for all he has achieved in Lagos is well-documented and even understudied in other African nations, Nigerians would prefer to hate him, lie against him, deny him due credit and insult Lagos daily to mask their hate, envy and sheer bad belle. 2 Likes |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by geonyte(m): 10:00am On Sep 07, 2021 |
Ovamboland: Y Yyy Y Y
|
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by Emergingnation(m): 10:38am On Sep 07, 2021 |
SlyDev:Fulani Marauder spewing trashed as usual.. |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by nisai: 11:06am On Sep 07, 2021 |
myobjective:FACT! OMOLUABI, AIYE RE A LADUN. 2 Likes 1 Share |
| Re: VAT Ruling:lagos Responsible For 70% Of Collection Across Nigeria by 9japride(m): 11:39am On Sep 07, 2021 |
Lagos state is a former capital territory so a lot of organizations moved in there and pay huge tax to the government. Why can't other South western states generate very high internally generated revenue? Tomorrow someone will have the gut to say Abuja is their own including all the infrastructure that was built will oil money. Abuja and Lagos is for the enjoyment of all Nigerians since they sing one Nigeria music always. |
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