The Minister of Finance, Kemi Adeosun, yesterday said, 55 percent of Nigeria’s Value added tax (VAT), comes from Lagos State.
Adeosun made this known while speaking at a parley between the Federal Government and Progressive Governors forum in Abuja.
She noted the 87 percent of Nigeria’s VAT was derived from five states including the Federal Capital Territory (FCT), while 13 percent of Nigeria’s VAT comes from 32 other states in the federation.
“There is no poor country that has a high tax compliance rate, and no rich country that has a low one,” Adeosun said.
“55% of Nigeria’s VAT was collected in Lagos State; FCT, 20%; Rivers, 6%; Kano, 5%; and Kaduna, 1%, I’m hoping that one day, finance commissioners will stop needing to come to Abuja monthly to share FAAC, because IGR (internally generated revenue) will be sufficient.”
The Minister also urged the states to do more to generate revenue and not solely depend on the federal government for federal allocation, while stating that the country’s abysmal tax-to-GDP ratio is at six percent, which happens to be one of the lowest in the world.
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