Why Did Kano Receive 100% Tax Revenue While Lagos Received 20% Despite Generating N46bn?

Talks about how the Value Added Tax (VAT), generated from the 36 states in the country, is being shared by the Federal Government, has dominated news space in recent time.

Recall that the Rivers State Government had approached a federal high court in Port Harcourt, seeking to stop the Federal Inland Revenue Service (FIRS), a tax collection arm of the FG, from collecting VAT in the state.

In its ruling, the high court granted Rivers State the right to collect VAT Revenue, effectively dissolving the Federal Government's power to collect VAT in the state.

In reaction to the court ruling in Port Harcourt, the Lagos State Government quickly passed its own bill, seeking to control the collection of VAT in the state.

Many northern states have expressed displeasure at the move by the Rivers and Lagos State government to control VAT collection in their states.

However, Governor Nyesom Wike did not just approach a Federal high court without explaining his reason.

In a post shared on Social media, Wike claimed that Rivers State generated about N15.1bn as taxes in June; However, the state only received N4.7bn as revenue from the federal government, which is about 31% of the total revenue it generated, Continuing, Wike stated that Lagos State received only... Advance Reading For More Details.nn

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