Lagos State contributes 55% to VAT-Finance Minister
Lagos State contributes 55% to VAT-Finance Minister
THE Minister for Finance, Kemi Adeosun has said more than half of Nigeria’s Value Added Tax (VAT) comes from Lagos state alone.
Speaking at the parley between the Federal Government and Progressive Governors Forum (PGF) in Abuja on Tuesday, Adeosun said the 87 percent of Nigeria’s VAT is derived from four states and the Federal Capital Territory (FCT).
According to her no country in the world with high tax compliance rate is poor, and no rich country has a low tax compliance rate.
“There is no poor country that has a high tax compliance rate, and no rich country that has a low one,” Adeosun said.
Quoting current VAT collection data across Nigeria, the minister said “55 percent of Nigeria’s VAT is collected in Lagos State. 20 percent in FCT, 6 percent in Rivers, 5 percent in Kano, 1 percent in Kaduna”.
“I’m hoping that one day Finance Commissioners will stop needing to come to Abuja monthly to share FAAC, because internally generated revenue will be sufficient.”
The minister had earlier complained about the country’s abysmal tax-to-GDP ratio, which she said was at six percent, further stating it to be one of the lowest in the world.
Speaking on the topic “The Funding Nigeria Needs,” the minister says the states must do more to generate revenue from with and not solely depend on the federal government for federal allocation.
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