Senate Leader, Opeyemi Bamidele, said the proposed Value Added Tax (VAT) model will guarantee more income for states in the North and a reduction for Lagos and Rivers, according to data on the plan.
A new sharing formula of the VAT is part of the four Tax Reform Bills before the National Assembly that has divided opinions, with a preponderance of Northern leaders opposing it, alleging that it would put the region at disadvantage and favour Lagos State.
Bamidele in a statement he released on Christmas accompanied by some data from the tax proposal said the opposition is a result of ignorance.
The Senator stated that instead of favouring Lagos the proposal is against the state and Rivers on VAT sharing.
“As credible data have shown, for instance, the new model recommends 6.17 per cent to Kano compared to 0.89 per cent currently due to it.
“It recommends 1.21 per cent for Zamfara compared to 0.05 per cent.
“Currently, Lagos gets 80.26 per cent, but the new model only recommends 15.28 per cent, representing an 81 per cent decrease.
“Under the new model, also, Rivers’ share will decline from 7.74 per cent to 4.6 per cent, accounting for a 41 per cent loss.
“With these figures, the narrative around the new derivation model is utterly incorrect and unfounded,” he claimed.
