Ogun Seeks Review of Sharing Formula of Corporate Income Tax Remittance

Ogun State Government has called for a review of the sharing formula of the corporate income tax payable by corporate organizations

Finance Commissioner, Dapo Okubadejo wants the proposed review to favour states hosting the organizations paying the corporate income tax.

Okubadejo made the call while giving the breakdown of the state’s 2023 budget in Abeokuta.

Okubadejo explained that Ogun State as the industrial capital of Nigeria only runs a manufacturing economy, saying he’s not elated with the status of the state since corporate taxes from the companies are not paid to the state.

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The commissioner who also is the Chief Economic Adviser to the state governor, was worried over the level of remittance of the revenue from the tax to Ogun State.

He said that one of the comparative advantages of Lagos’s economy was that the state runs a service-based economy, adding that target of Ogun State is to graduate into a service-based economy.

He also identified the Russian/Ukraine war which has affected the distribution of wheat, the cost of living crisis, unsustainable subsidy payment, and inflation which is not only about too much money chasing fewer goods but also rising costs of goods, as major factors in the budget consideration.

Federal government is taking 90 percent of the corporate income tax.