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TOP SECRET REVEALED! WATCH THE DOCUMENTARY THAT HAS BEEN HIDDEN FOR YEARS ON HOW ASO ROCK WAS BUILT, AND THE SECRET POWER BEHIND IT, WHY IT HARD FOR POWER HANDLERS TO BUILD THE COUNTRY.The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has emphasized that Lagos State stands to be the most affected by the ongoing tax reform initiatives. ...Tap To Read The Full Story Here | ..Tap To Read The Full Story Here...
He made these remarks during an appearance on Arise TV, where he addressed concerns raised about the tax reform policies introduced by President Bola Tinubu.
Oyedele clarified that the committee’s proposals, particularly on Value Added Tax (VAT), are designed with the intent of benefiting all regions of Nigeria, although certain areas, especially Lagos, are expressing dissatisfaction.
He pointed out that Lagos is the biggest loser in the reform due to the concentration of major businesses in the state. Many companies, including large corporations such as MTN, BUA, Dangote, Airtel, and several banks, have their finance departments centralized in Lagos. As a result, these companies currently remit their VAT to Lagos, which is home to their headquarters.
“Lagos is the biggest loser in the reform bill because most companies headquartered in the state currently remit their VAT there due to their centralized finance departments,” Oyedele explained.
He went on to address the claims by Lagos and Rivers States, which have been vocal in advocating for the direct collection of VAT at the state level. Both states argue that they contribute significantly to the national VAT pool and should be entitled to a larger share of the revenue. Oyedele noted that although these states believe they should collect VAT directly to reflect their contributions, this could lead to chaos for businesses operating across multiple regions.
“Allowing states to collect VAT independently would be akin to implementing a 100 percent derivation model, which could create serious disruptions. States in Nigeria would struggle to manage the input-output process correctly,” he said. He further explained that under the proposed reforms, VAT collection would be redistributed in a way that addresses existing imbalances, which could see revenue move away from Lagos despite its significant contributions.
Oyedele also elaborated on the current state of VAT collection, stating, “As of now, when companies remit their VAT, they do so from their head offices because that is where their finance departments are located. This is why most of the large companies, such as MTN, BUA, Dangote, Airtel, and several banks, remit their VAT to Lagos. Similarly, some oil companies are based in Rivers State.”TOP SECRET REVEALED! WATCH THE DOCUMENTARY THAT HAS BEEN HIDDEN FOR YEARS ON HOW ASO ROCK WAS BUILT, AND THE SECRET POWER BEHIND IT, WHY IT HARD FOR POWER HANDLERS TO BUILD THE COUNTRY.
In conclusion, while the tax reforms aim to balance the fiscal responsibility among the states, Oyedele acknowledged that the changes might present challenges, especially for Lagos, as it navigates a significant shift in the way VAT revenue is allocated across the country.…Tap To Read The Full Story Here.
