September 2, 2019

FMC Keffi Generates Over N300 Million As Tax Annually Yet No Any Presence Of Nasarawa State

The Benue state Board of Internal Revenue Service (BIRS) Sunday said it will clamp down on illegal tax collectors. BIRS also stated that it has arrested one Aga Peter for impersonating as a staff of the revenue Board. Chairman of the board, Andrew Ayaban in a statement issued Sunday said the suspect, Mr  Peter was arrested with the assistance of the Police at an illegal check point at Tor Mkar in Konshisha local government area of Benue state, collecting illegal taxes from unsuspecting members of the public.   He said the impersonator at the time of arrest was found in possession of a fake BIRS identity card and illegal receipts with which he defrauded unsuspecting victims. He said the board under his leadership was committed to end the regime of illegal tax activities adding that the gesture has already started yielding results. Ayabam said, in order to reposition the revenue board, he abolished all revenue check points and terminated the contracts by underperforming tax consultants.    Source:  Blueprint

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More African countries are looking to tax mobile money transactions

Much has been written about the need for African countries to collect more tax revenue from citizens and businesses. The IMF has been imploring sub-Saharan countries, particularly over the last decade, to focus on expanding and diversifying their tax bases. Some countries have taken heed of the advice. Yet most haven’t moved beyond lip service. When it comes to new taxes, we often see African governments (especially those led by new administrations) setting their sights on commodity players like mining companies and oil multinationals. Now there’s also a growing trend of governments looking to their fastest-growing sector of the past two decades: the mobile phone industry. In most countries, phone companies and mobile operators already pay taxes. The more recent trend is to initiate or raise specific mobile consumer taxes—particularly for devices and transactions. Just over a year ago, Uganda’s regulators introduced a so-called social media tax and a levy on mobile money transactions. Uganda is not alone: Industry research from 2017 shows up to 26% of the taxes paid in the mobile industry in 12 Sub-Saharan countries were industry-specific. Kenya, often highlighted as the leading light of mobile money sector, has also been increasing taxes on transactions and on airtime use, which can result in double taxation—you can’t have a mobile money transaction without already having paid for airtime.   Source: QZ

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TFC urges FG to increase tobacco tax by 70%

Tobacco-Free Club (TFC), University of Abuja chapter,  has called on the Federal Government to increase tobacco tax to 70 per cent of the commodity’s retail price. Mr Izang Lawrence, former President of the Club, made the call on Monday at a campaign to enlighten Nigerians on the national tobacco control act of 2015, in Abuja. “The government must significantly increase tobacco tax to be at par with the World Health Organisation (WHO) recommended level of 70 per cent of the retail price over the next five years,” he said. He recalled that in October 2005, Nigeria ratified the World Health Organisation Framework Convention on Tobacco Control (FCTC). “The framework recommended many effective ways of controlling tobacco in its various stages and protecting public health. “Till date, a lot of the recommendations of the FCTC, which Nigeria is a signatory to are yet to be implemented by government,” Izang said. According to him, one of the recommendations of the FCTC is about 70 per cent tax increase. But in Nigeria, it is currently around 20 per cent. Izang also called for stiffer laws to prohibit the sale of tobacco to minors and smoking in public places. “We want the prohibition of sale of tobacco products to and by anyone below age 18 and ban on sale of cigarettes in single sticks. “Our tobacco control group will never be tired of asking the government to significantly increase tobacco tax. “The present tax regime is insignificant and insufficient to lead to price increases and will definitely not reduce consumption. “We want prohibition of smoking anywhere on the premises of a child care facility, educational facility and health facility; and other prohibited areas for smoking include playground, amusement parks and other public spaces. “We also want prohibition of tobacco advertising, promotion and sponsorship of any kind,” he said. He urged the Federal Government to begin the process of earmarking a significant fraction of tobacco tax and levies for tobacco control and to educate smokers of the dangers of smoking. Izang described earmarking a fraction of the revenue accruable from tobacco taxes and levies as one of the best practices effective for the promotion of public health. He added that the National Tobacco Control Act 2015 provided for the setting up of the Tobacco Control Fund to implement the National Tobacco Control Regulations. “Nigeria has approved the tobacco control regulations, which will make it possible for the Federal Ministry of Health to implement and enforce the Nigeria Tobacco Control Act of 2015. “We ask that the Federal Government to start the process of earmarking a significant fraction of tobacco taxes and levies for tobacco control and national health coverage,” he said. According to him, the National Tobacco Control Act 2015 provides for the setting up of the tobacco control fund and up till now it has not been implemented. Kenneth Amah, President, TFC, University of Abuja, stressed the need to create more awareness on the dangers of tobacco smoking. Amah said that government had reviewed the standard for cigarettes to include the complete ban on cigarettes with characterizing favour, including menthol.   Source: Sun News

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Federal institutions in Yaba not paying taxes, council boss laments

The chairman of in the council include University of Lagos (UNILAG), Yaba College of Technology (YABATECH), West African Examination Council (WAEC), Federal College of Education (Technical), Psychiatric Hospital, Queen’s College, three military barracks, State CID, among others. According to the council boss, none of the institutions occupying half of the council’s land is paying a dime into its purse. “We spend a lot of money to provide infrastructure, maintain them and make workers of these institutions comfortable.” Omiyale spoke during a business summit organised by the council to provide a forum for interpersonal relationship between the council and the business community. He said: “Very few of the businesses operating within Yaba LCDA pay our rates; some of those paying are doing it after being compelled. We have shown them what the resources we get is spent on, and we are very prudent in our spending.” The chairman further urged business owners to prioritise youths in Yaba for employment as part of their Corporate Social Responsibility (CSR). Facilitator of the summit, Prof. Abiola Sanni, a tax consultant, advised the councils to embrace e-payment and reduce physical contact and cash payment. This, he said, would ensure prompt issuance of receipt. A call was made for heads of the institutions to pay the required rates for the businesses operating within their institutions.   Source: Guardian

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