Dem Presidential Committee wey dey look mata of fiscal policy and tax reforms don talk say e dey important make dem increase di Value-Added Tax (VAT) rate.
Na Oga Taiwo Oyedele, wey be di chairman of di committee, talk dis one on Monday wen e dey yarn say dem go also check di way dem dey share VAT money.
E talk for one policy exposure and impact assessment meeting wey di committee do.
For Nigeria now, VAT rate na 7.5 percent.
Oga Oyedele still talk say di committee don propose make dem increase di share of VAT money wey states and local governments dey collect reach 90 percent.
According to wetin dey for section 40 of di VAT Act, federal goment dey collect 15 percent of di tax money, states dey share 50 percent, and local governments dey collect di remaining 35 percent.
But Oga Oyedele say di committee dey suggest make dem reduce federal goment share from 15 percent go 10 percent.
“We dey propose say make dem reduce federal goment own from 15 percent go 10 percent. States go collect more money but dem go share 90 percent with local governments,” na wetin e talk.
Oga Oyedele say di committee propose dis sharing formula change cos na states get VAT.
“For 1986, states bin dey collect sales tax. Military pipo come bring VAT for 1993 and dem stop sales tax, so dem say dem go dey collect VAT and return 15 percent as cost of collection and na im be di 15 percent wey dem dey charge today. But we think say e too much,” na wetin e yarn.
Di tax expert still talk say na di final consumer supposed carry di burden of VAT.
“So we must make am dey transparent and neutral and na wetin over 100 kontris wey get VAT dey do,” Oga Oyedele talk.
“Nigeria economy na more than 50 percent for services and if I just stop here, many states go broke cos VAT collection go reduce by more than 50 percent and e no go even work at all.
“So we need to adjust di VAT rate go up small. We go make sure say e no go affect businesses. Di only tin be say basic tins like food, education, medical services and accommodation no go carry VAT at all. So for poor pipo and small businesses, dem no go pay VAT.”
Oga Oyedele say oda consumers go pay small money join.
“We don talk to businesses about am and dem no go increase di price of dia products. We wan make sure say wen we do dis VAT reform, nobody go increase di price of tins. We go work di mathematics with private sector,” na wetin e yarn.
Oga Oyedele still talk say e no good make dem give each state exclusive right to keep dia own VAT money – because e fit cause gbege.