Nigeria Launches Nation-wide Tax Payment Campaign

As the Nigerian government seeks to increase its non oil revenue, the

Federal Inland Revenue Service (FIRS) has launched a nationwide campaign to enlighten and educate the public on the need to pay tax.

The campaign tag tax Thursday sensitization program is aim at implementing the the voluntary assets and income declaration scheme (VAIDS) launch by the present administration and increase the level of payment in nigeria

The campaign team visited market places, departmental shops and super market as well as shopping malls to educate traders and members of the public on payment of tax and its accrued benefits.

Unveiling the campaign in abuja, the executive chairman FIRS Mr. Babatunde Fowler said the need to increase government revenue cannot be over emphazised adding that the campaign would continue every thursday to raise tax awareness and result in massive enrollment of new tax payers.

Tax Thursday’ would continue every Thursday for the next one year, as part of efforts by the federal government to raise the consciousness of Nigerians on tax as a major source of revenue for the country.“The only way we can make Nigeria sweet is to start paying our taxes,”

Mr.fowler said the aim is to encourage nigerians to pay tax as it is being done in other part of the world.

“We have come out with the VAIDs programme, which gives everybody the opportunity to come out and declare their income and pay their contributions to ensure that Nigeria becomes a better place for all.
“I’m sure if we all contribute, Nigeria of our dreams will emerge. It will become a prosperous and conducive country to live in. Let’s join hands together to realize this dream by paying taxes,” Mr. Fowler said.

With the misconception of Nigerians on paying tax, chairman association of Nigerian traders, fct, edozie ogwu said the government a need to collaborate with traders for an effective tax inclusion
”We want to appeal to them to them to collaborate with us in some areas, we are ready to pay our taxes because without taxes, we cannot make the country work. We thank you for giving us the opportunity to regularize our taxes,” Mr. Ugwu said in its quest to achieve a broader tax base, the Nigeria Governments VAIDS programme offers a grace period from july 1, 2017 to march 31, 2018, for tax evaders to voluntarily pay back to government what they owe.

In exchange for full and honest declaration, the government promises to waive penalties that should have been levied and also waive the interest that should have been paid on overdue tax.

Nigeria’s tax compliance rate currently stands at 6%, whilst most developed nations records between 30-32%.

VON

FIRS Generates N778bn in First Quarter 2017

The Federal Inland Revenue Service (FIRS) says it generated N778.19 billion revenue in the first quarter of 2017.

This is according to a progress report by the FIRS sent to the Federal Ministry of Finance, and obtained by the News Agency of Nigeria (NAN) on Tuesday in Abuja.

The report, which showed the revenue performance for the first quarter of 2017, gave a breakdown of money collected.

According to the report, the FIRS collected N338.3 billion as Petroleum Profit Tax between January and March, as against the N176.7 billion collected in the period under review in 2016.

Similarly, Value Added Tax (VAT) revenue increased from N198.7 billion in first quarter of 2016, to N221.37 billion in first quarter of 2017.

The report showed that the biggest improvement was from Education tax collection, which the FIRS surpassed in 2016 by 311.7 per cent.

It said in first quarter of 2017, N33.9 billion was generated as Education tax revenue as against the N8.24 billion generated in the same period of 2016.

Also, the service said it achieved 284.3 per cent improvement in Stamp Duty collections, as it generated N3 billion in first quarter of 2017, as against the N785 million generated in 2016.

The report also showed that consolidated tax revenue for the first quarter of the year grew by 123 per cent, from N11.5 billion in 2016 to N25.7 billion in the same period of 2017.

The service also recorded success in boosting its collection of National Information Technology Development Fund (NITDEF) levy, which went up from N129 million in 2016 to N179.2 million in 2017.

The report, however, showed that the FIRS did not record any improvement in Company Income Tax and Capital Gains Tax collections.

The service collected N155.6 billion as Company Income Tax in first quarter of 2017, while it collected N166.85 billion in the same period of 2016.

It said N110.9 million was generated from Capital Gains in 2017 as against the N859.1 billion generated in the same period of 2016.

“The analysis shows that we have recorded an increase of N214 billion, representing an overall increase of 38 per cent in 2017, when compared with the collection performance of the corresponding period in 2016.

“We attained this collection performance in spite of several challenges, as we have continued to vigorously pursue our strategies internally, while improving collaboration with relevant stakeholders to boost our collections.

“The strategies put in place are still on course and progressively yielding,’’ the FIRS said.

It will be recalled that the FIRS Chairman, Mr BabaTunde Fowler pledged to improve tax collection by capturing more people and companies under the tax net.

In April, he said that four million individuals have been included in the tax net, bringing the total to about 20 million individuals.

This still leaves a gap of about 40 million taxable individuals and corporate organisations both in the formal and informal sectors.

NAN

FIRS To Generate N4.9tn In 2016

The Federal Inland Revenue Service (FIRS) says it is targeting a revenue of N4.9 trillion in 2016.

Chairman of FIRS, Mr Tunde Fowler, disclosed this on Monday at the opening of the 134th Joint Tax Board meeting in Kano.

He assured that 80 per cent of the targeted amount would be collected before the end of the year.

“It is a known fact that once the oil price drops, the revenue from the sector will drop.

“So, our mandate now is to ensure increase in the non-oil revenue to ensure stability in the entire system,’’ Fowler said.

He said that the meeting would address challenges militating against effective tax administration in the country.

He recalled that the Inspector-General of Police had dismantled all road blocks across the country as part of efforts to check indiscriminate and multiple tax payment.

“The meeting will also review all the existing tax laws with a view to ensuring their effective implementation for great result,’’ he said.

Fowler called on the participants to come up with useful suggestions to improve revenue from tax in the country.

Earlier, Kano State Commissioner for Finance, Prof. Kabir Dandago, said the state government would continue to support measures aimed at improving internal revenue generation, not only for the state but for the country.

The News Agency of Nigeria (NAN) reports that the theme of the meeting is: “Imperatives of Transitioning from Oil Revenue Dependency to Non-oil Revenue Sufficient.’’

It was attended by heads of board of internal revenue service from the 36 states and the Federal CapitalTerritory. (NAN)

Fowler Redeploys 26 FIRS Directors

The Executive Chairman, Federal Inland Revenue Service, FIRS, Babatunde Fowler, has ordered the immediate restructuring of the management of the agency with the transfer of 26 top officials in the directorate cadre to different positions in various locations across the country.

Under the exercise, the chairman introduced the State Coordinator structure in the FIRS to help widen the net to capture more registered corporate and individual taxpayers towards increased revenue generation.

The Head of Communication & Servicom Department, Wahab Gbadamosi, explained in a statement that each of the 13 State Coordinators would supervise operations in their areas of jurisdictions of posting.

Two directors were moved to the headquarters in Abuja, while three are expected to coordinate affairs in the states.

“Experienced deputy directors were transferred to FIRS’ Training School and centres across the country as part of the efforts of the Service to strengthen its knowledge transfer programme and expeditious development of the capacity of its workforce in the interim,” Mr. Gbadamosi said.

The State structure, he said, was part of the new FIRS Chairman’s vision of minimizing the span of control, closer focus on corporate taxpayers in all states of the federation and stronger collaboration with State Boards of Internal Revenue, SBIR, to increase overall tax yield acruable to the three tiers of government.

Under a new campaign to widen the tax base, the FIRS spokesperson said FIRS registered additional 359,158 corporate taxpayers within 107 days between October 13, 2015 and January 27, 2016.

He said the FIRS chairman plans to add at least 500,000 new corporate taxpayers by 31st March 2016.

To widen the tax base further by an additional five million new individual taxpayers to the countrywide tax register by December 2016, the FIRS Chairman plans to work with states under the Joint Tax Board, JTB, structure.

Those affected by the latest posting include the Director of FCT and North Central Region, Olufemi Faniyi, who was posted to the Compliance Support Group, while Director, South-South and South-East Directorate Department Innocent Ohagwa, is now Acting State Coordinator, Akwa Ibom, Bayelsa and Cross River States.

Director, Lagos Mainland (East and West Directorate) Department Gbolaga Oshiga, is now Acting State Coordinator, Ogun, Oyo and Osun States, while Director, North-West and North-East Regions Directorate Department, Mohammed Magam, becomes the Acting State Coordinator, Kebbi, Sokoto and Zamfara States.

Director, Oil and Gas Department, Lagos, Olufunlola Adediran, was transferred to the Office of the Coordinating Director, Domestic Tax Group in Abuja.