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Tag: deductions

  • House probes FIRS’ N89.6b yearly deductions

    House probes FIRS’ N89.6b yearly deductions

    The House of Representatives has started the probe of the over N89 billion annual deductions of the Federal Inland Revenue Service (FIRS) from tax revenue it collects for the Federal Government.

    The Ad-hoc Committee, headed by Hon. Michael Enyong yesterday began an investigative hearing into the Accounting Procedures of the Federal Inland Revenue Service (FIRS) that made the four per cent deductions of the FIRS translate into such huge funds.

    “The primary focus of this Ad-hoc Committee will be to scrutinise the accounting procedure and calculations of the four per cent of this non-oil tax revenue which the service is empowered to retain as operational cost which in 2014 stood at N89.6billion,” Enyong told participants

    He said in 2014, revenue from the FIRS amounted to N4.69trillion while the national budget for that year stood at N4.669trillion.

    “We can infer from this that if revenue from tax is properly administered transparently, accountably, diligently, it will be sufficient to fund the national budget.

    “Over reliance on oil revenue is inadequate; the country must focus on a more reliable and predictable source of revenue which, without doubt, is taxation,” he said.

    According to the lawmaker, the investigative hearing, which involved government revenue generating agencies, private corporations  as well as accounting professionals locally and internationally, “is only aimed at providing adequate framework for effective taxation and tax administration in the country.”

    The Speaker, Hon. Yakubu Dogara while declaring the hearing open said the N6.060trilion 2016 budget can be financed by an improved method of tax collection.

    Represented by Deputy Speaker, Hon. Yusuff Lasun, he said a strong tax regime aided by an efficient and virile accounting system in the successful diversification of  any economy.

    According to him, the hearing was necessitated by a resolution of the House which led to the setting up of the Committee with a view to ascertaining the accounting framework currently in use and examine its effectiveness in line with current economic realities.

    Dogara said while tax policies and tax laws create the framework for improved tax revenues, the actual level of taxes which flow into government revenue largely depends on the efficiency and effectiveness of the accounting procedures adopted by the revenue administration within the economy.

    He said: “You will recall that the House on its first sitting on August 11th,  2015 reached a resolution that mandated this Ad-hoc Commitee to investigate the accounting procedures of the FIRS with a view to ensuring adherence to constitutional and statutory provision.

    “This investigative hearing is coming at a time when our economy is facing acute revenue shortfall owing to the global downturn in the oil market. So there’s no better time that we must diversify our revenue base and strengthen our revenue collection system than now.”

    He lamented the negative consequences the nation’s mono-product economy has visited on on the country, adding that it has led to the need for more revenue sources from alternative sources.

    “This exercise is therefore part of legislative effort aimed at complementing government plans toward boosting it’s revenue generation as the nation strives to check its over dependent on oil. I’m of the firm believe that a properly structured and efficient revenue service could generate and even surpass the N6.060 trillion required to fund the 2016 budget,” Dogara said.

  • Ortom not cause of February salary deductions

    Ortom not cause of February salary deductions

    The Benue State Government has assured civil servants that their wages and welfare will continue to be a priority and no one will be allowed to tamper with their salaries.

    Reacting to complaints over alleged disparity in the arrears of the February and March salaries, the government explained that the problem was a consequence of an agreement between the immediate past administration in the state and labour unions to effect deductions up to the end of February and commence full payment in March.

    It said it was based on that payroll that the Ortom administration applied for the bailout package from the federal government.

    The Nigeria Labour Congress in the state, it added, is aware of the agreement which led to the deductions and is in a better position to enlighten workers on the situation.

    Government also dismissed as unfounded and malicious, the alleged diversion of N3 billion from the bailout funds by the Special Adviser on Local Government and Chieftaincy Affairs, Titus Zam.

    It said the Special Adviser has no access to the bailout fund and “there is no way he could have diverted part of it. Moreover, representatives of NLC, TUC and other relevant unions are involved in the disbursement of the bailout funds to workers so they should be able to testify on the transparent manner the funds are being handled,” Terver Akase, Senior Special Assistant on Media to Governor Samuel Ortom said in a statement in Makurdi.

  • CNPP to Fayose: speak on N650m deductions

    CNPP to Fayose: speak on N650m deductions

    The Conference of Nigeria Political Parties (CNPP) in Ekiti State has called on Governor Ayo Fayose to break his silence on the N650 million allegedly being deducted monthly from the state’s federal allocation into the purse of an unnamed “election contractor”.

    The umbrella body of registered political parties said it was no longer comfortable with the governor’s silence.

    It said the statements by his aides on the matter were neither enough nor convincing since the money belongs to the people.

    In a statement yesterday by the Director of Publicity and Strategy, Kunle Omotayo, the group said the furore generated by the revelations required an urgent response from Fayose to calm the frayed nerves of citizens.

    The CNPP said it was Colonel Onot Ngene who first blew the whistle on the alleged deduction, after which a former Central Bank of Nigeria (CBN) Director of Research, Chief Dele Falegan and the All Progressives Congress (APC) spoke on the issue.

    It regretted that rather than reacting to the issues raised, Fayose’s aides were busy attacking personalities.

    They said this compelled the parties to seek Fayose’s direct response.

    The statement reads: “We are not unaware that the Peoples Democratic Party (PDP) and some aides of the governor had responded  with derogatory words on all the personalities that had raised eyebrows on this alleged graft, the CNPP is however advising the PDP and its cohorts to stop exhibiting flippancy and shadow boxing on serious state matters.

    “The CNPP is seriously concerned at the continuous announcement by the state government on the dwindling revenue of the federal allocation to the state inclusive of the Internally Generated Revenue (IGR).

    “When the people have been alerted to this alleged huge diversion of funds as signposted by the imbalance in government’s financial obligation to the people coupled with the recent verification of workers, yet many civil servants, pensioners and university are being owed salaries and subventions ranging from two to four months.”

    Meanwhile, the CNPP commended Fayose and security agencies for their efforts in tackling kidnapping and robbery.

    The body implored the governor to give adequate moral and financial support to security agencies to ensure a synergy in flushing out criminals from the state.

  • Union gives one week ultimatum over TETFund, salary deductions

    Union gives one week ultimatum over TETFund, salary deductions

    The crisis between the management of the College of Education, Ekiadolor in Edo State and the Coalition of Union,  deepened at the weekend, following the alleged inability of the school management to remit to the union’s TETFund deductions and the non-payment of last December and this year’s January salaries.

    The union, at a meeting in Benin, the state capital, gave a seven-day ultimatum to the management to pay the unions or face another strike.

    The union’s chairman, Comrade Fred Omonuwa, who addressed reporters in Benin, described the development as a “grand theft and deceit” allegedly perpetrated by the management.

    Buttressing his claim over the alleged diversion and mismanagement of TETFnd, Omonuwa displayed copy of a letter, dated June 6, 2014, in which  TETFund’s Executive Secretary B. M. Umoh, queried the bursar, Esekhile Ehiremem, whose name was allegedly smuggled in as a beneficiary of TETFund’s conference.

    It was learnt that the arrangement was against the policy of the fund.

    The letter, addressed to the Provost, Prof Amen Uhunmwangho, reads: “You are kindly requested to recover  N1,500,005 from Mr Esekhile Emmanuel Ehiremem, lodged same in your TETFund dedicated account and forward evidence of such to the fund. The amount so recovered should be used to pay the underlisted workers, who were omitted and short paid in our earlier release. Edokpa W. Imonikhe, (N793,960) and Mrs Noruwa Doris Ohenhen, (N560,000) short paid.

    Omonuwa said: “The unions observed with great disappointment the delay on the part of College management to remit the union’s trust fund deductions of COEASU and NASU for last October and November to the trust fund executives…”

  • Ogun, pay my pension deductions

    SIR: After 14 years of meritorious service and voluntary resignation in December 31, 2012, from the employment of Ogun State Universal Basic Education Board I have not been paid my pension which was deducted from my salary.

    I need this money to start a small scale business pending the time my gratuities will be paid.

    I have written letters for the refund; till date, there has been no positive response.

    My pension administrator is SIGMA PENSIOSN LIMITED.

    I am using this medium to appeal to the Governor, Senator Ibikunle Amosun of Ogun State to please act swiftly and use his good office to save my soul and others involved.

    • Babajide Olusola Olanrewaju

    Ogun State

     

  • Illegal salary deductions: Rivers workers give Amaechi 7-day ultimatum

    Illegal salary deductions: Rivers workers give Amaechi 7-day ultimatum

    Rivers State civil servants and teachers are heading for a show down with the state government over what they term illegal deductions from their salary.

    They have given Governor Rotimi Amaechi a seven-day ultimatum to stop all such deductions or face an industrial action.

    Chairman of the Nigeria Labour Congress (NLC) in the state, Mr. Chris Oruge, who issued the ultimatum at the weekend in Port Harcourt said government has been taking the workers for granted with the introduction of the Rivers Sate Social Services Contributory Levy (SSCL).

    The Contributory Levy (SSCL) Law, No. 9 of 2010 had earlier been rejected by stakeholders at the public hearing on the bill only for government to insist that it must be embraced effective from September 2010.

    Workers’ contributions were graduated based on individual’s grade level and the backlog of deductions to be made over a period of time.

    However, the Ministry of Finance, Office of the state’s Accountant-General and Board of Internal Revenue reportedly disregarded the agreement and made huge deductions from the September and October salaries.

    The SSCL in an August 1, 2012 circular entitled “Notice to pay your Rivers State social Services Contributory Levy,” said: “Pursuant to Section 15 of the Social Services Contributory Levy Law of Rivers State (No. 9 of 2010), I am directed to inform you to immediately commence implementation of the monthly deductions of the above levy from all employees in your organisation and remit it to any of the Rivers State designated Internally Generated Revenue collecting banks.

    “Please note that the deduction is distinct from PAYE monthly deductions and both are to be deducted at source from all employees. The effective date of this levy is September 2010.

    “We have attached herewith the list of designated banks and payment schedule (Section 1 (3) of the Rivers State Law No. 9 of 2010 (SSCL) for your guidance.

    “Please note that you shall make recourse to Section “19” of the Rivers State Law (No. 19 of 2010), where there is a default by any employee in deducting and remitting the levy as prescribed by the Act.”

    However, the Commissioner for Finance, Dr. Chamberlain Peterside, who spoke to our reporter on phone last night, said the deductions from workers salaries have been suspended. “Until we finish the necessary arrangements. For now, it will no longer appear on the payslips of the workers.”

    He said the deductions made in September and October are for the contributory pension scheme, adding that the workers should be very grateful to the state government, for assisting them to plan their retirement.