The presidential committee on fiscal policy and tax reforms says there is a need to increase the value-added tax (VAT) rate.

Taiwo Oyedele, chairman of the committee, spoke on Monday while disclosing the VAT revenue-sharing formula would be reviewed.

He spoke at a policy exposure and impact assessment session organised by the committee.

Nigeria’s VAT rate is currently 7.5 percent.

Oyedele also said the committee has proposed reviewing state and local governments’ share of VAT revenue to 90 percent.

According to section 40 of the VAT Act, the federal government gets 15 percent of the tax revenue, states share 50 percent, and local governments share the balance of 35 percent.

However, Oyedele said the committee is recommending reducing the federal government’s share from 15 percent to 10 percent.

“We are proposing that the federal government’s portion should be reduced from 15 percent to 10 percent. States’ portion will be increased but they would share 90 percent with local governments,” he said.

Oyedele said the committee proposed adjusting the sharing formula for VAT because it is a tax of the states.

“In 1986, we had sales tax collected by states. The military came up with VAT in 1993 and stopped sales tax so they said it would collect VAT and return 15 per cent as cost of collection and that is the 15 per cent charged today came about. But we think it is too much,” he said.

The tax expert added that the burden of VAT should be on the ultimate consumer.

“So we must make it transparent and neutral and this is what over 100 countries where they have VAT are doing,” Oyedele said.

“Nigeria’s economy is more than 50 percent in services and if I just stop at this, many states will be broke because VAT collection will go down by more than 50 percent and it won’t even fly.

“So we therefore need to adjust the VAT rate upward. We would ensure that it doesn’t affect businesses. The only thing is to look at basic consumption from food, education, medical services and accommodation will carry zero percent VAT. So for the poor and small businesses, no VAT.”

Oyedele said other consumers will pay a bit more.

“We have spoken to businesses about it and they won’t increase the product price. We want to make sure when we do VAT reform, no one will increase the price of commodities. We will work the mathematics with the private sector,” he said.

Oyedele also said each state should not be granted exclusive custodianship of their collections– because it would likely result in chaos.


https://www.thecable.ng/we-need-to-increase-vat-rate-says-taiwo-oyedele/amp/

Thunder ⚡ ⚡⚡ Fire 🔥🔥 🔥 You Tinubu APC and all of the Tinubu appointees

By the time APC is done with us eh....we warned them oh

Tax! Tax!!! Tax!!! This is how their gbajue certificate forger demigod fleeced Lagosians that they called development. God go punish you! Ezigbo ara gbalagi there. Clueless oppressors!

Incompetent drug criminal

Ikpeyi:
The presidential committee on fiscal policy and tax reforms says there is a need to increase the value-added tax (VAT) rate.

Taiwo Oyedele, chairman of the committee, spoke on Monday while disclosing the VAT revenue-sharing formula would be reviewed.

He spoke at a policy exposure and impact assessment session organised by the committee.

Nigeria’s VAT rate is currently 7.5 percent.

Oyedele also said the committee has proposed reviewing state and local governments’ share of VAT revenue to 90 percent.

According to section 40 of the VAT Act, the federal government gets 15 percent of the tax revenue, states share 50 percent, and local governments share the balance of 35 percent.

However, Oyedele said the committee is recommending reducing the federal government’s share from 15 percent to 10 percent.

“We are proposing that the federal government’s portion should be reduced from 15 percent to 10 percent. States’ portion will be increased but they would share 90 percent with local governments,” he said.

Oyedele said the committee proposed adjusting the sharing formula for VAT because it is a tax of the states.

“In 1986, we had sales tax collected by states. The military came up with VAT in 1993 and stopped sales tax so they said it would collect VAT and return 15 per cent as cost of collection and that is the 15 per cent charged today came about. But we think it is too much,” he said.

The tax expert added that the burden of VAT should be on the ultimate consumer.

“So we must make it transparent and neutral and this is what over 100 countries where they have VAT are doing,” Oyedele said.

“Nigeria’s economy is more than 50 percent in services and if I just stop at this, many states will be broke because VAT collection will go down by more than 50 percent and it won’t even fly.

“So we therefore need to adjust the VAT rate upward. We would ensure that it doesn’t affect businesses. The only thing is to look at basic consumption from food, education, medical services and accommodation will carry zero percent VAT. So for the poor and small businesses, no VAT.”

Oyedele said other consumers will pay a bit more.

“We have spoken to businesses about it and they won’t increase the product price. We want to make sure when we do VAT reform, no one will increase the price of commodities. We will work the mathematics with the private sector,” he said.

Oyedele also said each state should not be granted exclusive custodianship of their collections– because it would likely result in chaos.


https://www.thecable.ng/we-need-to-increase-vat-rate-says-taiwo-oyedele/amp/

Mad APC government

Very little value is being added. That's the underlying issue. We eat with 60% of our earnings.

A value-added tax is a tax that is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.

These people are seriously deranged. We don enter this one chance of Renewed Hope.

Na Yoruba people wey dey use IGR measure economic development una vote nah. Everybody go hear am

😂😂😂😂

Increase everything. Give us more hardship!

Introduce Breathing Levy

"widen the tax net and reduce the purchasing power"---Bola Tinubu

Can't believe this oyedele guy is this dumb. He said we have spoken to businesses and they have agreed they will not increase prices because of vat adjustment. Oga for this Nigeria abi for another Nigeria

This one has come again.

Na Yoruba man make oando no dey send staffs to abroad for training again

Go and verify


Na Yoruba man

It will be a good development according to APC urchins, if Nigerians doesn't kill APC, APC will kill Nigerians.

Taxes are good for a country's economic development but when the revenues generated are not ploughed into real societal needs it becomes useless.

Yoruba and owo mi da. You cannot produce, you cannot farm, you only know how to tax and extort.

E be like say Taiwo dey craze

Why can't the government slash the salary of the president, senators , house of assembly with their pa's una won kill everybody with tax ni?

What has Tinubu government done for the masses since assuming office a year ago? He has removed all the subsides, added new levies and tax...what have they done with the money gotten from all these?

The title and the article are two different things but trust Nigerians who don't read to draw conclusions based on their emotions.

The article is talking about revenue sharing formula and not increasing the VAT rate

This is misleading.

It seems to be talking about revenue sharing of VAT between the centre and component units and not an increase in VAT