Still on the issues relating to VAT distribution in Nigeria, by Abubakar M. Kareto

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms has explained on the proposed tax reform bills, the issue of VAT will be properly addressed.

At the channel’s broadcast town hall meeting, several panellists offered compelling explanations that, in my opinion, have sufficiently defused tensions and reduced the political heat.

To clear up any confusion, I have never supported taking something for free from anyone. This means that no state should take something from another state for free; each state should get what is due to it.

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Again, we are only basing our arguments logically based on VAT generated this year as disclosed by FIRS where majority of the country’s VAT were paid in Lagos,not because the products and services were consumed nor produced in Lagos alone, for example BUA paid VAT for Sokoto Cement in Lagos because the BUA’s administrative office is in Lagos , Imo State generated a VAT of less less than 1 billion Naira at a time when over 2 trillion Naira was realised in Lagos, nothing special about that, is just because the consumption VAT in Imo was paid in Lagos.

Although MTN boasts over 12 million active subscribers in Kano, it also pays all its VATs in Lagos. MTN is the largest VAT payer in Nigeria, paying over 200 billion Naira in VAT annually. Lagos State accounts for less than 10 percent of MTN SIMs. VATs are, by definition, consumption taxes globally.

These have been our main points of contention from the beginning of this discussion. Taiwo, interestingly enough, has admitted to having this problem and has promised to fix it during the Channels Television Town Hall Meeting today. The next step is to ensure that the VAT tracking, monitoring, and distribution process is transparent and has the necessary technological infrastructure.

Regarding this VAT matter, I acted entirely honestly and proudly, without any qualms. For the time being, I will tread lightly on this matter.

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