Talks about how the Value Added Tax (VAT), generated from the 36 states in the country, is being shared by the Federal Government, has dominated news space in recent time. Photo Credit: Premium Times. Recall that the Rivers State Government had approached a federal high court in Port Harcourt, seeking to stop the Federal Inland Revenue Service (FIRS), a tax collection arm of the FG, from collecting VAT in the state.
A well known human rights activist, Adeyanju Deji has once again spoken. According to a recent post he made on his verified Facebook page, he suggested that the northern Governors should start collecting tax from cows, since they love cows so much. Speaking further, he also suggested that the southern governors should also be allowed to collect tax from alcohol, by so doing, there will be no problem again.
According to reports from several reputable sources, eNaira is expected to be launched before the end of 2021. Godwin Emefiele. Credit: Vanguard The Governor of Central Bank of Nigeria, Godwin Emefiele, said that the Central Bank Digital Currency (CBDC) would increase payment system efficiency, lead to faster and cheaper remittance inflow, and it would lead to targeted social interventions, out of many others.
A tax is a compulsory charge placed by the government on the income of an individual, corporation, trust, as well as on the value of an estate or a gift. The purpose of tax collection is to benefit the public, by generating revenue to meet the government's expenditure.
The Senior Special Assistant to the President on Public Affairs, Ajuri Ngelale has on Monday slammed the governor of Rivers State, Nyesom Wike for insisting on collecting VAT in his state. He described the governor as being tribalistic and aggressive in his call for the collection of Value Added taxes by south-south states.
On Monday, President Muhammadu Buhari unveiled Nigeria's digital currency at the Presidential Villa in Abuja. The digital currency was supposed to be unveiled on October 1 but was postponed due to other activities planned for the Fourth of July celebration. The CBN stated in announcing the launch of the e-Naira that the product, which was developed after many years of research, will advance the boundaries of the payment system to make financial transactions easier.
The issue of high taxation in Cross River State remains a major challenge in the state. Over a year ago the Cross River State Governor, Sir Ben Ayade exempted the poor and low-income earners from paying tax as he felt they were suffering to raise money to run the family.
Taiwo Oyedele, (Fiscal Policy Partner and Africa Tax Leader at PwC) while speaking on Arise TV revealed that VAT is not enshrined in Nigeria's 1999 Constitution. He said we have a VAT which was a decree during the military era and it was decreed in 1993 whereas we are dealing with a constitution that is made in 1999.
On 25th of October 2021, President Muhammadu Buhari officially launch the Central Bank Digital Currency ( CBDCs) called eNaira. The journey to create a Digital Currency for the country started in 2017 as a result of global trend to create digital currencies. It is believed that the emergence of eNaira I'm the country will impact individuals and sectors of our economy with the following great benefits:
Globally, in most economies, the mounting difficulty of rising fiscal deficits and high levels of public debt combined with the Eurozone has particularly stirred up interest from macroeconomic policy makers in the direction of a transformed focal point on fiscal policy and sustainability of public debts both in advanced and developing countries.
Photo Credit: Google The Central Bank of Nigeria (CBN) suspended the launch of its Digital Currency (CBDC) – the eNaira, earlier scheduled for October 1, 2021. Recall that the Apex Bank fixed October 1st for the launching of the Digital Currency. The CBN Spokesman Osita Nwanisobi, was quoted saying "the planned unveiling was suspended due to other key activities lined up to commemorate the country’s 61st Independence Anniversary."
The Federal Inland Revenue Service (FIRS) has said that it is protecting to collect N10.1 trillion as tax from Nigerians and others in 2022. This was made known by the Chairman of the Federal Inland Revenue Service, Muhammad Nami yesterday when he was addressing the House of Representatives Committee on Finance on the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Photo: Value Added Tax, culled from Texas Tax A Value Added Tax (VAT) is a flat-tax levied on a consumed product or rendered service. It is similar in some respects to a sales tax, except that with a sales tax the full amount owed to the government is paid by the consumer at the point of sale.
The minister of finance, budget and national planning Zainab Ahmed, has given reasons why the federal government would borrow more funds. This is as a result of the present economic situation of the country, Ahmed, on Wednesday, October 6, said that the federal government will borrow to fund the N6.258 trillion deficit in the 2022 Budget.
A member of the house of representatives, Fakeye Olufemi, says owners of small and medium sized enterprises, including carpenters and taxi drivers, should be made to pay tax. The honorable disclosed this while speaking on the floor of the house on Wednesday. Fakeye, who was contributing to the 2022 budget debate during the plenary session, said this will enable the federal government to boost its revenue generation.
Following the ruling of the Court of Appeal in the issue of Value Added Tax (VAT), the Federal Government has declared that the Federal Inland Revenue Service (FIRS). According to a statement disclosed by Mr. Abubakar Malami, The Attorney- General of the Federation (AGF), and minister of Justice, the matter was due to the disagreement over the collection of Value Added Tax between FIRS, and Rivers State government.
Muhammad Nami, the executive Chairman of Federal Inland Revenue Service (FIRS), has criticized the inefficiencies in the current stamp duty and capital gain tax collection system. The chairman said, these inefficiencies have led to poor revenue generation from these taxes. He made this known at the opening ceremony of the 2021 tax week of the Chartered Institute of Taxation of Nigeria, in Abuja on Thursday.
A member of the House of Representatives, Olufemi Fakeye, has advised the Federal Government to begin to tax self-employed Nigerians because, according to him, they earn lots of money. He made this known on Wednesday, October 13,2021, while commenting on the 2022 budget, stressing that it would help the Federal Government of Nigeria boost its revenue.
Zainab Ahmed, the Minister of Finance, Budget and National Planning has said that Nigeria's borrowing rate is still at 23% of the Gross Domestic product, highlighting that federal government borrowing is responsible and sensible. According to Sahara Reporters, Zainab made the statement on Monday, 30th August, 2021, in Abuja while addressing Pressmen on the recent rise in the Country's GDP.
Taiwo Oyedele, (Fiscal Policy Partner and Africa Tax Leader at PwC) who was a guest on Channels TV on Politics Today on Wednesday revealed that Federal Government would not lose money if the position is sustained for States to start collecting VAT because last year the Federal Inland Revenue Services (FIRS) collected 1.53 trillion from VAT.