Connect with us

News

How FIRS Plans To Realise Its Revenue Target -Fowler

Published

on

The Federal Inland Revenue Service (FIRS) says it plans to realize its revenue target for the year through recoveries from defaulting millionaire taxpayers, values added (VAT) and compliance enforcement activities.

The Chairman of FIRS, Tunde Fowler, said in January that the agency’s revenue collection target for 2019 was about N8 trillion.

Mr Fowler told the House of Representatives joint committees on Finance, Appropriations, Aids, Loans and Debt Management Legislative Budget and Research and National Planning and Economic Development that he hopes about N750bn would be realized from about 55,000 defaulting taxpayers during the year.

Mr Fowler, who spoke on the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), said using banking information to bring non-compliant taxpayers with N1 billion and above turnover to comply about N23.25 billion has been recovered so far.

He also restated that 85% of VAT collected goes to State Governments. He said the exercise has been extended to cover those with turnover of N100 million and above.

“To date, about 500 of the tax defaulters have come forward and have paid about N24 billion. We believe we should be able to go through the 55,000 before the middle of this year.
“In terms of estimates we should be able to be able to generate from this exercise alone about N750 billion.”

Besides, Mr Fowler said the FIRS also expects that the increase in Value Added Tax (VAT) collection between 2015 and 2018 will continue during the year.

He said FIRS is already broadening its VAT collection scope with the adoption of States Accountants Generals (SAG) collection platform, VAT Auto-Collect, integration of the GIFMIS platform with Ministries, Departments and Agencies, (MDAs) and through e-Service payment options.

Out of about N5.3 trillion, a large percentage of the revenue is shared between states and local governments.’ In VAT, there has been a growth of over 44 per cent between 2015 and 2018 at the current rate of 5 percent.

“When you look at Africa as a continent, Nigeria still has the lowest VAT rate. When we look at the items that do not attract VAT, they include basic food items, medicals, and education.
Insisting VAT is not for the poor, Mr Fowler said if one is able to go to a restaurant to eat and drink the same thing one can buy in the open market, then one can pay VAT.

“So, VAT basically is a consumption tax, and those who choose not to go to the open market to buy their food and cook at home are subject to VAT. So, VAT is not a hardship on the low income earners.

“For those who have the ability and the desire to take the choice of going to areas where they have to pay VAT, then they should be allowed to pay VAT,” he added. He said revenue collection by FIRS increased by about 32 per cent from N4.02 trillion in 2017 to N5.3 trillion in 2018.
The FIRS Chairman told the committee that through enforcement activities in respect of defaulting taxpayers from various tax offices, tax audit and investigation assessments, the agency recovered about N28. 51 billion and $77. 83 million.

Also, the FIRS is partnering with the Economic and Financial Crimes Commission (EFCC) and Joint Tax Force (JTF) since 2018 to enhance the fight against tax related economic fraud. As at December 2018, he said about N6. 94 billion and $278,430 had been recovered by the JTF as part of initiatives to boost revenue generation.
To deepen tax revenue collection and expand the nation’s tax net as well as increase the revenue base, Mr Fowler said the FIRS also initiated income tax on property owners in Abuja and Lagos.

He said the initiative, which was initially targeted at property owners in Abuja and Lagos, has so far yielded N4.3 billion, and is being extended to other locations like Oyo and Kaduna states.
“It is important to note that this is not a property tax, but rather the use of the provisions of the law to bring into the tax net companies that own properties but failed to file necessary tax returns and pay appropriate taxes due,” Mr Fowler said.

On tax audit exercise of the Service, the FIRS boss said this will cover both the National Tax Audit (NTA) and the Pioneer Audit (PA). The NTA exercise contributed the sum of N212.79 billion to tax collection in 2018.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Lagos- Calabar Coastal Project: Peter Obi inciting Igbos against Tinubu Govt

Published

on

The Minister of Works, Dave Umahi, has alleged that Peter Obi, former presidential candidate of the Labour Party, LP, is inciting people of the southeast, especially those who are not well informed, against the government.
Umahi claimed that Obi would not fight for the people even after getting them into trouble.
He made the statement on Wednesday while speaking during an event to compensate property owners affected by the Lagos- Calabar coastal road prospect.
The exercise was organized by the Federal Ministry of Work.
The 700-kilometre coastal highway has been enmeshed in controversy following the demolition of Landmark Beach Resort, valued at $200 million, to create a right of way for the project which is estimated to cost the federal government N15 trillion.
After the demolition, a visibly worried Paul Onwuanibe, the Group CEO of Landmark, told BusinessDay that about 70 percent of the beach was destroyed by the government bulldozer, describing the action as “insensitive.”
“What is left of these businesses are the rubbles you can see (in video clips he captured while the demolition was going on). Those are people’s investments and means of livelihood reduced to mere rubbles; so many jobs have been lost and many Nigerian families are in for it,” Onwuanibe said.
On his part, Obi slammed President Bola Tinubu’s administration for going on with the controversial Lagos-Calabar coastal highway project in defiance of public outcry.
The presidential candidate expressed displeasure that the government is embarking on a job-losing project at a time of rampant unemployment.
Obi said it was not too late to discontinue the Lagos-Calabar highway project, adding that urgent necessities are nationwide security, poverty eradication, healthcare, and education, especially for the poor and underprivileged.
He had also described the reported demolition of businesses and residences in the designated right of way for the project as insensitive and heart-wrenching, lamenting that livelihoods were being wiped away, lifetime investments wasted, and jobs disappearing as a result of the demolition.
In a post on his X handle on Tuesday, the former Anambra State governor said: “The outcry against this project has been overwhelming due to the current situation in the country. However, reports as of yesterday indicate that demolition of businesses and residences in the designated right of way for the project has commenced from the Lagos end.
“The sight of this insensitive demolition is heart-wrenching. Livelihoods are being wiped away, lifetime investments are being wasted, and jobs are disappearing as bulldozers roar through. The homes of the elderly are being overturned by the power of bulldozers.
“This hasty flag-off defies the widespread outcry by the public, especially business and property owners directly affected by the project. Nobody knows the outcry that will accompany this project as it progresses towards poor rural landscapes.
“Thousands of jobs are about to be lost, with investments above $200 million at risk. Over 100,000 jobs in the leisure and hospitality sector face imminent extinction, along with 80 small businesses and their 4000 mostly youth employees.”
However, Umahi insisted there was no inhumanity meted to Landmark and that the matter should be buried because he was actively involved.
The former Ebonyi State Governor alleged that Obi goes around to condemn people, thereby bringing judgment upon himself.
He said: “It brings to some of the comments made by my brother, his Excellency Mr Peter Obi, I am not supposed to comment about it because some people have already done the work. And I know what Arise Television brought courtesy of Channels Television, they were bringing similar scenarios when His Excellency Peter Obi was the governor. He made a statement saying ”Any infrastructure that stands in the way of the road must go. And there would be no compensation paid.” That’s what he said.
“But look at me, by the human face of the renewed hope agenda administration, we are even paying for people who are illegally staying on the coastal line, and don’t have valid infrastructure and valid documents. That is mercy, that’s mercy… You know some people darken counsel without knowledge. You know there’s the devil in the details.
“When you condemn people, you bring judgment upon yourself. And that is what he (Obi) has done. And I think he’s inciting some of the south east people that are not well informed. He is inciting them. And gets them into trouble. And he doesn’t go to fight for them. Wisdom is a defence. And I want our people to have wisdom because I am involved.
“There’s is no inhumanity meted to Landmark, that matters should be buried because I was there. And so we fought everything possible. Even some people donated property to save his two big infrastructures. That’s appreciation. But some people have taken sides along with him to play politics.

Continue Reading

News

Embrace the Tariff Increase or Prepare for Complete Power Outages – Minister of power, Adebayo Adelabu Cautions Nigerians

Published

on

The Minister of Power, Adebayo Adelabu, issued a caution on Monday, stating that if the planned increase in electricity tariffs is not put into effect, the nation will face a complete power outage within the next three months.

The minister revealed this information yesterday in Abuja during his appearance before the Senate Committee on Power for an inquiry into the recent electricity tariff increase by the Nigerian Electricity Regulatory

He said, “The entire sector will be grounded if we don’t increase the tariff. With what we have now in the next three months, the entire country will be in darkness if we don’t increase tariffs.

“The increment will catapult us to the next level. We are also Nigerians, we are also feeling the impact.”

“For this sector to be revived, the government needs to spend nothing less than 10 billion dollars annually in the next 10 years.

Meanwhile, While the minister was at the National Assembly Nepa took the light.

Continue Reading

News

Man Disappointed Odumeje Failed To Display Famous ‘Power’ At London Meeting

Published

on

A UK-Based Nigerian, Agu Chigekwu, identified on Instagram as richjoelng, recently called out popular Nigerian Pastor, Chukwuemeka Ohanaemere, better known as Odumeje, for failing to pray for members of the congregation at a recent event in London.

Chigekwu stated that he attended the event expecting to see Odumeje perform miracles and pray.

He said he was, however, left disappointed after Odumeje only sang and then left without praying for anyone.

He said, “When he came, he was already advertising powers, abidoshaker , citadel, he will release powers and the one he has not touched. Na so people take come o, filled the place . People came out!”

He explained that the programme was scheduled to start at 5:30pm, but Odumeje did not arrive until 10:30 pm and. When he finally came, he started singing, and the audience thought he would begin praying afterward.

” He dey sing o, as he finish singing, people kon think say he go pray, before we knew it, Odumeje don disappear ,” he added.

Chigekwu questioned whether Odumeje was a pastor or an artiste, stating that people came from all over the UK with their sick loved ones in hopes of receiving healing prayers from Odumeje.

He added, ” Odumeje na pastor abi na artist? Is he a performer? So, na performance he come do for us all the way from Nigeria. No be even to pray for people.

“People came all the way from Scotland, Wales, different parts of UK. Some came with their sick ones, old women, for him to pray for healing. Na so Odumeje take do this thing; he no pray for anybody.”

He also stated that some people even paid for front-row seats specifically to get prayed for by Odumeje.

“This guy disappointed me. Thank God, I did not even buy that ticket. People paid £1,000, £500, to stay at the front seat because they needed healing.

“They think say after he don sing, he go pray. Make dem see the powers that this man carry . All those citadel, indaboski bahose , and all those kind of things ,” he added.

In a separate video, Chigekwu clarified that he did not intend to criticise Odumeje but rather wanted to raise concerns about the event.

He said the promoters did not properly inform attendees about the purpose of the event, and he only learned later that Odumeje was actually there for an album launch.

Continue Reading

Trending