TheCable

The total value-added tax (VAT) generated by the Kano state government in the first eight months of 2021 was higher than what was generated by the entire south-east region.

The south-east region consists of five states namely: Abia, Anambra, Ebonyi, Enugu and Imo.

Kano generated total VAT revenue of N24.4 billion while the entire south-east region generated N21.23 billion.

Citing data from Federal Inland Revenue Service (FIRS), Daily Trust reports that the figure is VAT receipts for the period. 

The data also showed that Kaduna state with N19 billion accrual generated more than Akwa Ibom (N9.3bn), Bayelsa (N13bn), Delta (N13bn), Edo (N9bn), and Ogun (N11bn).

Kaduna’s VAT of N19.8 billion is higher than the combined collection of Abia, Cross River, Osun, Ekiti, Ondo and Imo.

Abia, according to the VAT report, collected N2.2 billion; Cross River collected N1.9 billion; Osun collected N2.07 billion.

Ekiti made N6.2 billion; Ondo collected N4.8 billion while Imo collected 1.01 billion.

Lagos topped the chart with 41.5 percent of total VAT generated from January- August 2021, which amounted to N421.2 billion, while Zamfara collected the least which is N762.5 million or 0.08 percent of the sum.

Trailing Lagos is the federal capital territory (FCT) which collected N241 billion or 23.74 percent; Rivers collected N92.3 billion or 9.09 percent, while Oyo followed with N61 billion representing 6.01 percent.

Over the past months, the FIRS and some state governments have been embroiled in a legal tussle over VAT collection.

Rivers and Lagos state governments have called for decentralisation of collection, but other states want a centralised collection.

The legal tussle followed the judgment of the federal high court in Port Harcourt, which restrained the FIRS from collecting VAT and personal income tax (PIT) in Rivers state.

At the lower court, the FIRS had appealed for a stay of execution, but the court dismissed it on the basis that it would “negate the principle of equity”.

Consequently, FIRS went to the court of appeal — the court ordered both Rivers and Lagos states to maintain status quo over the collection of VAT until the determination of the suit.

Not satisfied with the injunction, the Rivers state government filed the matter before the supreme court.

No date has been fixed for the hearing of the case at the apex court.

Recently, Zainab Ahmed, minister of finance, budget and national planning, disclosed that the federal government is considering political paths to resolve the VAT dispute.