The Local Government Authorities in Lagos State under the aegis of Conference of 57 Local Governments and Local Council Development Areas (LCDAs) have requested for an equal sharing formula with the state in the proposed Value Added Tax (VAT) bill now before the state House of Assembly.
The local councils and LCDAs are asking for a 50-50 sharing formula with the states, as against the 75-25 proposed in the bill in favour of the state governments.
This request was made by the Secretary of the Conference 57 and Chairman of Odi-Olowo/Ojuwoye LCDA, Abdulrasak Ajala, at a one-day public hearing on the bill organised by the Lagos State House of Assembly on Wednesday, according to the News Agency of Nigeria.
Ajala explained that the councils required a better sharing formula in the proposed VAT law to pursue meaningful development adding that being the closest to the grassroots, those councils that host the companies, should benefit from a better share than the 25% in the bill. What the Conference of 57 LGAs and LCDAs in Lagos State are saying
The council chairman commended the 9th Assembly for the bill, as well as the synergy between the Executive and the Legislature.
Ajala said, “On the distribution of revenue, you will agree with me, Value Added Tax is on consumption and production, and all these economic activities are domiciled in our respective communities. In addition, local governments, being the closest to the grassroots, need more revenues given the enormity of the responsibilities the Constitution confers on us.
