Tobi Aminu

Federal Inland Revenue Service has said that about 45 million Nigerians will be captured as taxpayers before December 2019. Mr Babatunde Fowler, Chairman, Joint Tax Board said this on Thursday in Ilorin at the inauguration of the new Tax Identification Number registration system and consolidated National Taxpayers’ Database for North Central zone. “Over the last four years, the economic policies of the current administration have focused on establishing a stable foundation for socio-economic growth and development.     “With the astute leadership of Mr President, the milestones achieved bears ample testimony on the impact that has been made, not only in tax-revenue administration but in the environment of doing business in Nigeria,” he said. Fowler listed the accomplishments to include expansion of tax base from 10 million to 20 million taxpayers with the potential for an increase of up to 45 million before year end. Fowler, who is also FIRS Chairman, said Internally Generated Revenue collection at the sub-national level grew exponentially by 46.11 per cent from N800.02 billion in 2016 to N1.16 trillion in 2018. He also said FIRS tax collections grew by 53.9 per cent from N3.3 trillion in 2016 to N5.32 trillion being the highest collection ever in the history of FIRS. Fowler added that N2.85 trillion was collected as Non- Oil Revenue which accounted for 54 per cent of total revenue collection. The JTB chairman said the federal government paid a total of N135.8 billion as outstanding PAYE tax liabilities owed by Federal MDAs to states from 2002 to 2016 with a total of N31.08 billion paid to the states in the North Central. “We are confident that this gesture by the Federal Government will encourage State Governments to also reciprocate and promptly remit all Withholding Taxes and VAT due to the Federation Account. “A positive movement during the same period is Nigeria moving up 25 points in Tax Administration Section of World Bank ‘Ease of Doing Business’. “This positive progression is also reinforced by the recent listing of Nigeria as one of the ‘top 20 reformers in Doing Business for the year 2020 by the World Bank. “We expect that more positive country reports will be released by the time the full report by the World Bank is released on October 24, 2019,” Fowler said. He said the new TIN Registration System would improve on the efficiency and output of the entire tax administration process. “It is also meant to provide enhanced convenience to the taxpayers as well as the tax administrators while guaranteeing that each taxpayer’s details are readily available to them at their fingertips at all times and anywhere,” Fowler added.   Source: Punch

The Federal Inland Revenue Service (FIRS) has said technology integration is aiding revenue collection across the country. Mr Babatunde Fowler, the Chairman, FIRS, disclosed this during the inaugural edition of the Nigeria e-Government Conference in Lagos. The chairman said technology adoption made payment process more convenient and improved communication between taxpayers and the service in key areas.      The chairman, who was represented by the Assistant Director, e-Services and PEBEC Coordinator, FIRS, Dr Zainab Gobir, said the service has automated all its processes. Fowler explained that e-registration, stamp duty payment and Value Added Tax had benefited from the automation during an upgrade done prior to 2016. “Now, with all these initiatives put in place, our revenue has gone up tremendously, comparing it from 2015 to now. So, this goes to tell you that the FIRS is all about innovation and we are all about continuously improving our technology to better serve the taxpaying public and to serve the nation as a whole,” he said. The chairman also said technology has helped the service improve its website to a point where Nigerians can easily operate and get an immediate response without visiting its physical office. He stated, “The FIRS website is very robust to the point that if you check your phone now and visit our website, it would tell you the closest (FIRS) office to where you are. “You can do your tax payment and enquiries on your phone in your house, in your offices, anywhere.”   Source: InvestorKing

Telecommunications operators have condemned the proposed nine per cent communications service tax the 9th National Assembly plans to re-introduce. The operators under the aegis of the Association of Telecommunications Companies of Nigeria said the 8th National Assembly which earlier considered introducing the tax in 2016 had shelved the idea after the intervention of the association.    Also, network operators belonging to the Association Licensed Telecommunications Operators of Nigeria said the proposed nine per cent tax would make life difficult for an average Nigerian as communication is presently the most affordable basic need of everyone. The President of ATCON, Olusola Teniola, noted in a statement on Thursday that ATCON executives met the former Senate President, Bukola Saraki, on November 8, 2016 where the senators acknowledged that the growth of ICT was critical to the creation of jobs and reduction in youth unemployment. The ATCON president noted that the association suggested that the tax base be widened to allow more businesses to pay taxes.   Source: Punch

The Lagos State Government has urged all hotels, restaurants, and events centres operators in the state to respect the decision of the court on the Lagos State Hotel Occupancy and Restaurant (Fiscalisation) Regulations 2017. The state said this in a statement on Friday that a suit challenging the consumption tax law was dismissed by the Federal High Court in Lagos on Thursday.     The Director, Public Affairs, Lagos State Ministry of Justice, Mr Kayode Oyekanmi, who signed the statement, explained that the court dismissed the claim of the plaintiffs that “since the Value Added Tax by Federal Inland Revenue contains provisions relating to the consumption, it had ‘covered the field’ and as such, no state law can impose any similar tax.”  “The judgment stated that Lagos State is the only constitutional and lawful body permitted to assess, impose and collect tax from customers for goods and services consumed in hotels, restaurants and event centres in the state. “The court granted an order of perpetual injunction to restrain the Federal Inland Revenue Service from collecting tax from customers for goods and services consumed in hotels, restaurants and event centres in Lagos State,” Oyekanmi said. The suit, which Oyekanmi spoke of, was filed last year by the Registered Trustees of Hotel Owners and Managers Association of Lagos. The association had in the suit urged the court to strike down paragraphs 4, 5, 6, 7, 8, and 11 of the Lagos consumption tax law. They urged the court to stop the Lagos State Government from installing certain gadgets in hotels and other hospitality centres for the purpose of monitoring their incomes, hence the taxes due to the state. But, according to Lagos State, Justice Rilwan Aikawa dismissed the plaintiff’s suit. “All hotels, restaurants, and events centres managers and operators are hereby enjoined to henceforth comply with the provisions of the Hotel Occupancy and Restaurant Consumption Tax Law and regulations of Lagos State as declared in the judgment of the Federal High Court,” Oyekanmi said.   Source: Punch

The Oyo State Government has reiterated its assurance to the people of the state that the administration would not increase tax on business enterprises in order to increase the Internally Generated Revenue (IGR) of the state. The Executive Chairman, Oyo State Internal Revenue Service (OYSIRS), Aremo John Adeleke, stated this in a chat with journalists in his office, saying that Governor Seyi Makinde was applying sympathy and empathy in his dealings on the matter since the new administration came into office.    According to Aremo Adeleke, the government is working assiduously to capture other areas that have not been explored to generate more revenue to the coffers of the state, adding that a culture of efficient and leak-proof collection in all areas of revenue would be put in place. “Instead of tax increment, we are emphasizing on efficient collection of existing revenue and we are bringing our informal sector into the tax net. Besides, we are reaching out to other geopolitical zones in our tax campaign. “The good performance of Governor Seyi Makinde has also changed the attitude of the stakeholders towards tax payment. Most of them are responding without any reminder. However, the economy is a big challenge for many companies as this has implication on Pay As You Earn (PAYE) remittances,” he said. Adeleke explained further that those that were reluctant to respond were being served reminders after which thorough enforcement would follow, assuring that any steps to be taken to enforce the tax drive would be legal, with human face. The chairman added that though churches and mosques were exempted from paying taxes but those with revenue earning ventures and other businesses would pay taxes, levies and any fees applicable. He used the opportunity to also call on those that were in better positions in the society to rise and assist the government to improve the standard of living of the citizenry by ensuring regular payment of their tax and dues.   Source: Daily trust

The Zona Chairman, Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN) MACBAN, Alhaji Giddado Sadiq, has explained that the group had no issue with farmers in the country especially South-east geopolitocal zone. Sadiq, who was reacting to federal government plans to increase Value Added Tax from 5 to 7.5% and CBN tax on Savings and Withdrawals for cashless policy, said that relationship between farmers and herders in the zone were cordial except that jobless (idle) people sometimes instigate crisis among them.    He appealed to president Muhammed Buhari-led federal government to reconsider decision on tax increment to avoid multiplying the sufferings of people and in turn increase unemployment which according to him breeds vices. “It might be counter productive if government increase or impose more tax on the poor masses because it will make people to suffer. You know we are still facing weak economy. There are high rate of unemployment in Nigeria. If the tax should affect those struggling to earn a living they may start engaging on social vices.  “You know it is not farmers that have issues with the herders but idle people. If more people are left to suffer they might go into crimes which will not augur well on us. Our government should find way of doing something about it,” he stated.   Source: Blueprint