VAT: Analysis showing what states generated, received in past eight months

VAT: Analysis showing what states generated, received in past eight months

Following the disagreements between states and the Federal Inland Revenue Service (FIRS) over the Value Added Tax, details of collections made by ea

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Following the disagreements between states and the Federal Inland Revenue Service (FIRS) over the Value Added Tax, details of collections made by each state and what was allocated by the Federation Allocation Committee (FAAC) have emerged.

Recently, a federal high court in Port Harcourt issued an order restraining the FIRS from collecting VAT and personal income tax (PIT) in Rivers state.

The Rivers State Government quickly enacted a VAT law and commenced the process to start the collection.

Although the federal tax authority had appealed for a stay of execution, the court dismissed it on the basis that it would “negate the principle of equity”.

Consequently, FIRS went to the court of appeal. The appellate court while delivering its ruling on ordered parties in the suit to maintain the “status quo ante bellum” (to maintain the situation as it existed before).

Lagos State also enacted its own law empowering it to collect the consumption tax in its domain. Other states have also thrown their weight behind the collection of VAT by states.

Analysis of the allocation by FAAC between January and August this year shows that the FIRS offices in Lagos, Rivers, and Oyo states recorded the highest collections.

Lagos generated N429. 203 billion; Rivers, N90. 293 billion, while Oyo came third with N64. 646 billion.

However, in the allocation of VAT revenue, Kano came second, displacing Rivers and Oyo from the top places on the table, after Lagos.

Lagos received the sum of N139. 587 billion; Kano which generated N24. 492 billion received the second-highest allocation of N 47. 082 billion, while Rivers was in the third position as it got N 46. 270 billion.

Kaduna which recorded a VAT revenue of N18. 262 billion, came after Zamfara with an allocation of N32. 726 billion, while Kastina which generated N3. 738 billion in the period under review got N31. 539 billion.

An analysis based on the six geo-political zones showed that South West had the highest allocation of N256. 737 billion, particularly because of the huge allocation to Lagos state.

North West had the second-highest allocation of N219. 813 billion.

The oil-producing region of South-South N 162. 598 billion.

North East and North Central received N129. 801 billion and N129. 154 billion respectively; while the South East kept the rear with N 109.629 billion allocations.

Below is a table showing what each state generated between January –August 2021 and the allocation to each of them

No. STATE VAT GENERATED VAT ALLOCATION
1 Abia 2.290b 20.020b
2 Adamawa  3.689b 22.260b
3 Akwa Ibom 8.39b 27.749b
4 Anambra 5.938b 25.001b
5 Bauchi 5.309b 25.613b
6 Bayelsa 12.536b 17.659b
7 Benue 1.268b  24.527b
8 Borno  3.442b 25.896b
9 Cross River 2.347b 20.478b
10 Delta 13.964b 27.854b
11 Ebonyi 7.894b 18.768b
12 Edo  8.284b 22.588b
13 Ekiti  6.635b 19.756b
14 Enugu 5.485b 20.729b
15 Gombe 4.028b  17.650b
16 Imo  1.941b 25.111b
17 Jigawa 3.375b 26.369b
18 Kaduna 18.262b 32.726b
19 Kano  24.492b 47.082b
20 Kastina 3.738b 31.539b
21 Kebbi  1.284b 22.162b
22 Kogi 3.286b 22.282b
23 Kwara 3.471b  18.998b
24 Lagos 429.203 b 139.587b
25 Nassarawa 2.495b 16.872b
26 Niger 3.723b 25.042b
27 Ogun 11.823b 25.141b
28 Ondo 4.554b 22.107b
29 Osun 1.995b 24.766b
30 Oyo  64.646b 45.136b
31 Plateau 5.208b  21.433b
32 Rivers  90.293b 46.270b
33 Sokoto 4.978b 24.219b
34 Taraba 1.756b 18.469b
35 Yobe  9.445b 20.525b
36 Zamfara 598.133m 35.716bn
37 FCT 235.794bn NOT ELIGIBLE