All this brouhaha about value added tax can be resolved tomorrow if the National Assembly passes a bill making it a local state-based tax collected by finance commissioners

Ayo Akinfe

[1] All this VAT noise is totally pointless. What we need is a Nigerian Finance Bill 2024 that will transfer responsibility for collecting VAT from the federal finance minister to the 36 state commissioners of finance

[2] That way, VAT will become a local tax with every state free to spend whatever it collects as it deems fit

[3] For instance,. Lagos, Borno, Anambra or Bayelsa state will be free to set a VAT tax revenue target of $50bn and levy its citizens accordingly

[4] All that needs to happen is the state houses of assemblies need to pass bills that create the necessary by-laws to eneble them collect VAT

[5] Personally, I would pass a by-law establishing a 60% faith tax on all religious houses and adding it to VAT because paying tithes is purchasing a good. You are essentially buying a product called salavation

[6] Were I a governor, I would also impose an annual luxury tax on all private jets. This will be 10% of the value of such aircraft. I would add it to the VAT basket too

[7] I would then open tax offices in every marketplace and motor park so retailers and those in the informal sector can pay their income tax at source. There will be tax breaks for those who bring in a lot of VAT

[8] I would also introduce an Owambe tax on lavish parties. Nigerians spend too much on entertainment, much more than the nation can afford. This would be added to the VAT basket too

[9] I would introduce a Foreign Engagement Tax of 40% to be levied on all those parties and events held in places like Dubai, Mauritius and Qatar. I see no reason why governors should not add this to the VAT basket

[10] As a governor, I would introduce a medical tourism and foreign education tax for all those getting health treatment and educating their children abroad. This will amount to 10% of their gross expenditure abroad. That too would be a VAT product

ayoakinfe@gmail.com