Home POLICY BUSINESS & FINANCE Kano Generated More VAT Than Five S’East States Combined

Kano Generated More VAT Than Five S’East States Combined

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The total value-added tax (VAT) generated by Kano state between January and August of 2021 was higher than what was generated by the entire south-eastern zone put together.

The zone is made up of five states namely: Abia, Anambra, Ebonyi, Enugu and Imo.

Kano generated total VAT revenue of ₦24.4 billion while the entire south-east region generated ₦21.23 billion.

The report quotes data from the Federal Inland Revenue Service (FIRS) VAT receipts for the period.

The data also showed that Kaduna state with ₦19 billion accrual generated more than Akwa Ibom (₦9.3bn), Bayelsa (₦13bn), Delta (₦13bn), Edo (₦9bn), and Ogun (₦11bn).

Kaduna’s VAT of ₦19.8 billion is higher than the combined collection of Abia, Cross River, Osun, Ekiti, Ondo and Imo.

Abia, according to the VAT report, collected ₦2.2 billion; Cross River collected ₦1.9 billion; Osun collected ₦2.07 billion.

Ekiti made ₦6.2 billion; Ondo collected ₦4.8 billion while Imo collected ₦1.01 billion.

Lagos topped the chart with 41.5 percent of total VAT generated from January- August 2021, which amounted to ₦421.2 billion, while Zamfara collected the least which is ₦762.5 million or 0.08 percent of the sum.

Trailing Lagos is the federal capital territory (FCT) which collected ₦241 billion or 23.74 percent; Rivers collected ₦92.3 billion or 9.09 percent, while Oyo followed with ₦61 billion representing 6.01 percent.

Over the past months, the FIRS and some state governments have been embroiled in a legal tussle over VAT collection.

Rivers and Lagos state governments have called for decentralisation of collection, but other states want a centralised collection.

The legal tussle followed the judgment of the federal high court in Port Harcourt, which restrained the FIRS from collecting VAT and personal income tax (PIT) in Rivers state.

At the lower court, the FIRS had appealed for a stay of execution, but the court dismissed it on the basis that it would “negate the principle of equity”.

Consequently, FIRS went to the court of appeal — the court ordered both Rivers and Lagos states to maintain status quo over the collection of VAT until the determination of the suit.

Not satisfied with the injunction, the Rivers state government filed the matter before the supreme court.

No date has been fixed for the hearing of the case at the apex court.

Recently, Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed that the federal government is considering political paths to resolve the VAT dispute.

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