{"id":86692,"date":"2021-09-26T20:39:46","date_gmt":"2021-09-26T19:39:46","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=86692"},"modified":"2021-09-26T20:39:46","modified_gmt":"2021-09-26T19:39:46","slug":"vat-collection-nigerias-tax-system-is-problematic-and-confusing-says-fayemi","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/09\/26\/vat-collection-nigerias-tax-system-is-problematic-and-confusing-says-fayemi\/","title":{"rendered":"VAT collection: Nigeria’s tax system is problematic and confusing, says Fayemi"},"content":{"rendered":"

Governor of Ekiti state, Kayode Fayemi has stated that the Nigerian Governors’ Forum (NGF) is waiting for the decision of the supreme court over value-added tax (VAT) collection.<\/p>\n

Fayemi who is also the chairman of the NGF said Nigeria’s tax system is problematic, confusing and needs attention.<\/p>\n

The Southern Governors’ Forum recently backed the collection of VAT by state governments instead of the Federal Inland Revenue Service (FIRS) on behalf of the federation.<\/p>\n

Two states \u2013 Rivers and Lagos states had enacted laws for VAT<\/a> collection, but the court of appeal had directed that states should maintain statuo quo pending the determination of an appeal filed by the FIRS.<\/p>\n

Recall that Rivers State had also asked the supreme court to set aside an order of the court of appeal.<\/p>\n

Fayemi during a live interview on Arise Television on Sunday said\u00a0governors are awaiting the outcome of the case instituted by some state governors.<\/p>\n

He said the governors\u2019 forum is currently looking at the issues and consulting on the implications of the collection on state governments.<\/p>\n

\u201cFor us, at NGF, this is an issue we are looking at both legally and policy-wise. We are asking our experts to help us look at the implications for states,\u201d Fayemi said.<\/p>\n

\u201cOur take is that the supreme court should accelerate decision on this so that we have clarity over who should be in charge of VAT \u2013 whether FIRS or states.<\/p>\n

\u201cWe will wait for the supreme court to have a decision on this.<\/p>\n

\u201cThe important thing is that our tax system is problematic, confusing and contradictory, and we need to do a lot more to begin to clarify things. So that we can have more efficient ways of collecting taxes.\u201d<\/p>\n

When asked about President Muhammadu Buhari\u2019s calls for the cancellation of debt at the United Nations general assembly, Fayemi said the federal government\u2019s borrowing is for reasons and are specific loans.<\/p>\n

\u201cNigeria is borrowing for reasons that are specific. The bulk of what we are borrowing is specific. If you look at what we are borrowing. You will see that these are specific borrowings and most attractive,\u201d he said.<\/p>\n

Fayemi said the borrowings are in line with World Bank and IMF standards.<\/p>\n

\u201cOn the other hand, you have the Chinese infrastructure<\/a> lending,\u201d he added.<\/p>\n

\u201cWe can now quiz whether we should be using 97 percent of servicing on debt. That\u2019s a debate we can have.<\/p>\n

\u201cThe issue is what are you borrowing for. Are you borrowing for consumption or infrastructure development?<\/p>\n

\u201cBuhari needs to be commended on that.<\/p>\n

\u201cThe question is we have revenue challenges\u2026borrowing is a win-win situation for our country and economy.<\/p>\n

\u201cI don\u2019t think there is anything wrong if President is calling for a review of debt structuring.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Governor of Ekiti state, Kayode Fayemi has stated that the Nigerian Governors’ Forum (NGF) is waiting for the decision of the supreme court over value-added tax (VAT) collection. Fayemi who is also the chairman of the NGF said Nigeria’s tax system is problematic, confusing and needs attention. The Southern Governors’ Forum recently backed the collection […]<\/p>\n","protected":false},"author":17,"featured_media":11039,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[1180,959,753,338,385,15406],"class_list":["post-86692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-firs","tag-infrastructure","tag-kayode-fayemi","tag-lagos-state","tag-rivers-state","tag-vat"],"yoast_head":"\nVAT collection: Nigeria's tax system is problematic and confusing, says Fayemi<\/title>\n<meta name=\"description\" content=\"Governor of Ekiti state, Kayode Fayemi has stated that the Nigerian Governors' Forum (NGF) is waiting for the decision of the supreme court over value-added tax (VAT) 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