- Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, warned that Nigeria’s economy would be in trouble if states are allowed to collect VAT
- Oyedele expressed concerns that allowing states to collect VAT could lead to a chaotic tax system that would harm the economy
- Some states have challenged the legality of the federal government collecting VAT in the past
- The proposed legislation includes changing the sharing formula of VAT, reducing the federal government’s share from 15% to 10%
- Oyedele emphasized that states should not be under the illusion that they would make more money by collecting VAT
- VAT was introduced in Nigeria in 1993 as a replacement for sales tax, which was collected by states with no meaningful progress
- Oyedele warned that if states start collecting VAT, it would lead to trouble for everyone.
Source: guardian.ng
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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