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VAT increase: States, LGs to get more allocation from February – AGF

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Rayyan Alhassan
Rayyan Alhassanhttps://dailynigerian.com/author/rayyan/
Rayyan Alhassan is a 30-year-old graduate of Journalism and Mass Communication at Sikkim Manipal University, Ghana. He is the acting Managing Editor at the Daily Nigerian newspaper, a position he has held for the past 3 years. He can be reached via [email protected], or www.facebook.com/RayyanAlhassan, or @Rayyan88 on Twitter.
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Ahmed Idris, Accountant-General of the Federation says States and Local Government Councils will receive additional funds from February following the implementation of the 7.5 increase in Value Added Tax, VAT.

Mr Idris made the assertion on Wednesday while speaking with newsmen at the sideline of the Federation Account Allocation Committee, FAAC, 2020 Retreat in Lagos.

News Agency of Nigeria reports that the theme of the retreat is” Efficient Federation Revenue Allocation as a Nexus for National Economic Diversification”.

READ  Lagos recorded N204.5bn as IGR, highest in 2020 – NBS

“You will see the impact of VAT increase from next month because effectively it took off on Feb. 1 and the states and local governments will definitely get bigger figures in terms of VAT allocation.

READ  FAAC: Nigerian federal, state, local govts received N601.110bn in November

“The Federal Government has 15 per cent, States have 50 per cent and the local governments have 35 per cent.

READ ALSO: Nigeria will not progress without taxation – CITN

“All these will be reflected in the succeeding months. I believe as from next month, we will see the impact of the increment of the VAT in the federation revenue,” he said.

Mr Idris said that the federal government remained committed to increasing the contribution of the non-oil sector to the nation’s revenue base.

READ  Pantami distances self from 7.5% VAT deductions on voice calls, messages

According to him, states are also being encouraged to tap into the vast potential that abound in their respective areas to increase their Internally Generated Revenue, IGR.

He said that the retreat afforded state Finance Commissioners and Accountant Generals the opportunity to deepen their knowledge on budget implementation and revenue generation.

READ  FAAC: Nigerian federal, state, local govts received N601.110bn in November

“Each state has its own peculiarities.  Each state has its own resources and what needs to be done is for each state to harness its own resources.

READ  Buni swears-in new Yobe LG chairs, charges them on improved IGR

“The key ways to achieve this growth in revenue have been given at the retreat.

“So the states should go back and see the potential that are there and apply some of these keys and new ideas imparted during the paper presentation to increase their IGR,” Mr Idris said.

NAN

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