Lagos, Rivers begin VAT collection, FG, North disagree

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The governments of Lagos and Rivers states have expressed their readiness to begin the collection of Value Added Tax in accordance with the judgement of a Federal High Court in Port Harcourt

, which ruled that states, and not the Federal Inland Revenue Service, should be collecting VAT and Personal Income Tax.

VAT is charged on the supply of goods and services in Nigeria, including those imported into the country, except the goods and services specifically exempted under the VAT Act. Justifying the reason for filing the suit, Wike added, “In this Rivers State, we awarded contracts to companies and within the last month, we paid over N30bn to the contractors and 7.5 per cent will now be deducted from that and to be given to FIRS.

Omotosho stated, “We are aware of the judgment and we applauded it. In a federation, that is the way it goes. In our pursuit of true federalism, it is a giant step forward. And in fact, we have notified all our stakeholders about the judgment that the Lagos State Government will implement it. Former Minister of Finance, Mrs Kemi Adeosun, had said in August 2017 that 55 per cent of the revenue generated by the Federal Government from VAT was being collected from Lagos State alone, adding that the remaining 45 per cent was being generated from the remaining 35 states and the Federal Capital Territory.

In the first quarter of 2021 alone, the National Bureau of Statistics disclosed that the country generated N496.39bn from VAT, which was an improvement on the N324.58bn it earned in the same period in 2020.

 

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E no go better for them for disagreeing.

I don't see anything wrong with this. I'm surprised by all these contentions. I think this what Nigeria needs at this time. This forces state governments to think outside the box. It allows for creativity and innovations. 💯

In fact, this thing will burn everybody and the southern states will suffer it more. You people still ignorantly think the north is your problem? Please continue.

This right here is one of the very action we need at this time. Everybody answer your papa name. Let's know who's working and those that have been feeding on others revenue 👌

They can go to court.

Maybe some of this parasite states will start thinking of how to generate funds on their own. It's because they are seeing free money to pay bandits and still cashout from it, that's why they are not sincere about it. Na when you start to hustle you go nor the value of money

They are not disagreeing based on the law but based on, “abeg na”. Anyway I’m sure that this ruling will be the boost that the States in the North of Nigeria needs to build modern industries and not just compete with Lagos & Rivers, but with Japan & the West. I trust the North.

Agreed, after this time out, they will go and industrialize

I really hope this is true and gets implemented. Any Northern state that wants to destroy trucks of alcohol supplies should not benefit from IGR generated from the sales of alcohol beverages in another state. Since we cannot reason with brains in Nigeria

Great, other southern states should follow up, you can't banned alcoholic drinks and also benefit from it tax... derive your own

Collect your VAT .. it’s your state Revenue.. states should have 80% .. nothing like federal giving the state whatever they like n sharing with North! Build your cities and your companies

Why will the North refuse? Are they not the ones destroying alcohol? 😻

North wants to collect VAT for Alcohol they destroy

The myopic has to sneak in 'North' in the reportage. You guys can't help yourselves 🤣 🤡🤡🤡

North should enjoy the gold in Zamfara and fgt VAT

If these are part of their resolutions they come up with in the Southern governors forum then let it remain forever. This will mark the beginning of waking up for the north or the begining of dissolution. Which ever is commendable.

Winning this case will definitely set a bright pathway of democracy and development in Nigeria. In fact, this a sure way to true federalism.

North will always disagree

One Nigeria in the mud

North will generate their own vat from bombing and terrorism

This is highly commendable,it's high time for all the states in the south to emulate this progressive step. It's no longer acceptable to be using what belongs to the south to feed your own people in the north and yet claiming the ownership of the country.

The Northern people will not be happy with this. What do they know how to do best than banditing, bombing etc.

Una no want shayo but una wan enjoy wetin shayo dey bring?

Other southern states join

I can only imagine what poor states will turn out to be in the next few years. A good judgement for economic viable states, a bad one for many states...Zamafara, Ekiti, Borno, Adamawa, Plateau...

Hisbah wants to collect a share of Alcohol tax?

First step to restructuring. North is the looser. Time they will beg for mercy. Wike the man

The ND Governors need to challenge the criminal seizure & conversion of their Oil & Gas comparative advantage to the center. This is the reason ND can never be developed. Every Region has its own comparative advantage: be it land, pop or mineral resources to be harnessed &..1/

They should collect VAT from cow naaa

Time for 'free money' will soon be over.

You can't steal our money from the South to fund your terrorist ventures in the North. Northern borders are wide open but the SW borders are closed, but Bua & Dangote can cross! Yet seyiamakinde GboyegaOyetola dabiodunMFR kfayemi RotimiAkeredolu jidesanwoolu siddon look.

Step in the right direction.

All states in d south should start exploration of all natural resources within their domain , after all notherners are mining gold without remitting to the FG. It's time to riseup and end this rubbish union. Northerners are the worst pest in the world, very wicked set of ppl.

Thunder fire them

Nothern governors said they prefer FG to collect. Thunder fire una there!

Lol 😂 states like Ekiti will suffer very well, they are producing nothing. Only collecting monthly VAT from other states swear.

tijanihabeeb le_capone seen this?

what VAT is being contributed by herdsmen? The Northern states are always benefiting from revenues from the south. Let all states collect VAT and give 3% to FG. The shit just hit the fan.

Zamfara state is not even sharing her gold with nobody...so why is the northerners kicking and throwing tantrums like an infant...

This is a legacy defining achievement by GovWike . Kudos, my Governor .

Which one is north disagree? Abi no be them dey feed the country again? Stupid people everywhere. Don't they have cows again? Nonesense

Nice one , all state should do their job not by relying on other state to take care of them .

Good developments

They should test other laws too.

Well-done GovWike and jidesanwoolu that's how U.S.A is being run. Every state should manage their resources, collect the VAT. So that we hold the state govt accountable when things go wrong.

The north destroy alcohol and ban other business and yet they want to be collecting VAT from those business from the south They think the south will remain silent Every state should collect their VAT The north needs to start working and stop idle waiting from southern revenue

This is how it should be so that states can be motivated to create a thriving environment that can see an increase in IGR and VAT. Governance is too relaxed as we currently have it hence the little or no progress being made across the country.

Zamfara is withholding their gold yet no outcry. Till SS start withholding oil

GovWike Very commendable.!! This is true leadership. Instead of crying about exclusive list and executive list.. you make the best of the situation by winning these small battles while still keeping you focus on the war. Well done. One win at a time.

This is a very good one, you can't be robbing peter to pay Paul.

This is a right step in the right direction 👏 👌🏿 🙌🏿

Good

Southern Nigeria is awake

When there's no prize for being a productive state, some states will be happy to hide under the blanket. This must be allowed to work

The only way forward. Only lazy governors are complaining. The northern Governors should go to work and think outside the box for survival. Times are changing, though not as fast as it should...

If FG disagrees, they should leave Abuja and come to the state to collect the VAT naa. Huge step

A good one.... A state in the south will award contract of 30b and 2.75b will be for VAT After they share it in Abuja, same state won't even get up to 3b Big cheating

This is a very good one, if restructuring does not start from the Central Government, the state government must proceed to it in every legal way they can. Hoping that other states emulate this wonderful start

U collect, we share no dey again! Kudos!

😂😂🤣 this fulani people are really funny

Of course they'll disagree

First move towards true federalism, some states shouldn't rely on other states for funding, all states shld wake up. Now am sure they will fight insurgency and banditry. And payment of ransom will be checked

How can an alcohol VAT consumed in the south be paid for funding sharia states government in the north where alcohol is banned in the state. God bless Rivers, Lagos state governments by taking the bull by horn

the era of u collect we share is gradually coming to an end .

Let states collect there VAT. So that each state can develop there state. This is not between Southern and Northern affair pls. Also, Let southern collect there VAT and share it among d south and Northern collect theirs and share it among the northern states. Dat make it easy.

Disagree over what ? Lol 😂

Good step in a right direction

What is northern business with what happens in Rivers or Lagos. If they generate revenue over there, they are free to withhold the VAT also

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