…Says 70% of June FAAC allocation from non-oil sector
26 July 2016, Sweetcrude, Abuja – In the face of global oil price collapse and domestic disruptions in oil production through activities of militants, the Executive Chairman, Federal Inland Revenue Service, Mr. Tunde Fowler has stated that it is time the country looked at other sources of revenue to fund its budgets.
He further disclosed that about 70 per cent of over N500bn raised from the Federal Accounts Allocation Committee in June came from the non-oil sector.
Fowler, who is also the Chairman, Joint Tax Board (JTB), was quoted in a Monday report by Economic Confidential as saying, “Of the sum, 70 percent came from non-oil sources while only 30 percent came from oil sources. It was the first time in 2016 that the Federal Government shared over N500bn among the three tiers of government during the FAAC meeting.”
“We are proud of the development and we tell ourselves that this is the time to fund the budget of the Federal Government from non-oil sources.”
According to Fowler, the FIRS tax revenue collection is a combination of a robust taxpayer registration drive, tax education and engagement through the establishment of the Federal Engagement and Enlightenment Tax Teams.
He said the audit of five key sectors, namely banking and the financial sector, aviation, power, telecoms, and oil & gas had started yielding a result.
Fowler noted that FIRS tax revenue collection is seasonal, but a combination of massive new taxpayer registration drive, tax education and engagement through the establishment of the Federal Engagement and Enlightenment Tax Teams, FEETT, audit of five key sectors: banks and the financial sector, aviation, power, telecoms and oil and gas is beginning to yield result.
He said that FIRS has also added over 700,000 new corporate accounts in since he assumed office.
Nigeria, he said, has a cumulative figure of 10 million registered taxpayers if you add the number of taxpayers of States Boards of Internal Revenue and the FIRS.
JTB, Mr. Fowler said has given itself a target to register at least 10 million additional taxpayers by December 31st, 2016.
“We have commenced tax enforcement too. We are happy that the efforts of the FIRS in collaboration with revenue stakeholders are already yielding a positive result.The FIRS chairman said the JTB had given itself a target to register at least 10 million additional taxpayers by December 31, 2016.
He said, “We have commenced tax enforcement too. We are happy that the efforts of the FIRS in collaboration with revenue stakeholders are already yielding a positive result.
He thanked Ogun State Governor Ibikunle Amosun for approving the FIRS’ request on automated deduction and remittance of Value Added Tax and withholding tax from the point of payments to contractors in the state.
Fowler said, “Pursuant to implementing the collaboration framework, the FIRS requested for an approval of state governors to allow the automation of the process of payments on taxable transactions to enhance the deduction, at the source, particularly of withholding tax and Value Added Tax.”