A sauƙaƙe wannan shine sabuwar dokar haraji da kuma yadda yake a yanzu sannan da kuma yadda ake son mayar da shi idan majalisar dokoki ta amince

 VALUE ADDED TAX REVENUE SHARING FORMULA — EXISTING & PROPOSED

⭕️Vertical Allocation Formula (VAF): Existing | Proposed

Federal Govt — 15% | 10%

36 State Govts — 50% | 55%

774 Local Govts — 35% | 35%

⭕️Horizontal Allocation Formula (HAF): Existing | Proposed

Equality: 50% | 20%

Population: 30% | 20%

Derivation: 20% | 60%

>–> Federal Govt's share reduced from 15% to 10%

>–> States Govts' share increased from 50% to 55%

>–> Equality share reduced from 50% to 20%

>–> Population share reduced from 30% to 20%

>–> Derivation share increased from 20% to 60%

💡Illustration: Assuming total VAT is ₦100bn

Under the existing sharing Formular:

Federal Govt takes ₦15bn

36 State Govts take ₦50bn

774 Local Govts take ₦35bn

Under the proposed sharing formular:

Federal Govt takes ₦10bn

36 State Govts take ₦55bn

774 Local Govts take ₦35bn

⭕️How will the States & LGAs distribute their share?

Under the existing formular: ₦50bn will be shared among States as follows 

- Equality [50%]: ₦25bn shared equally to all 36 States.

- Population [30%]: ₦15bn shared based on the population of each State.

- Derivation [20%]: ₦10bn shared based on how much each State contributed.

Under the proposed formular: ₦55bn will be shared among States as follows 

- Equality [20%]: ₦11bn shared equally to all 36 States.

- Population [20%]: ₦11bn shared based on the population of each State.

- Derivation [60%]: ₦33bn shared based on how much each State contributes.

🚩Possible outcome:

- Maintain existing VAF & HAF

- Adopt proposed VAF & HAF

- Maintain existing VAF, adopt proposed HAF

- Adopt proposed VAF, maintain existing HAF

#Statisense

@ A Yau