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Tag: Tunde Fowler

  • ‘CITN supports Lagos revenue collection’

    ‘CITN supports Lagos revenue collection’

    Former Federal Inland Revenue Service (FIRS) Chairman Dr. Tunde Fowler, has reflected on the level of support he received from Chartered Institute of Taxation of Nigeria (CITN) in growing Lagos State revenue base during his tenure as Chairman of the Lagos State Inland Revenue Service (LIRS) in 2005.

    He spoke at the night of tributes organised by the Chartered Institute of Taxation of Nigeria (CITN) took place in honour of its founder, Chief David Ajibola Olorunleke.

    Fowler said: “I want to emphasise that CITN helped Lagos State Lagos to progress in terms of tax revenue collection.”

    Through my research, I discovered that the visionary behind CITN was the individual we are honouring today. At a time when Nigeria largely overlooked tax revenue, he displayed extraordinary vision.”

    Earlier during the event, the 17th President of CITN, Innocent Ohagwa, lauded Olorunleke, whose name now adorns the CITN building in Abuja, for impacting lives through his exemplary lifestyle, leadership, and mentorship.

    Read Also: Ex-Governor Emmanuel urges Nigerians to back Tinubu’s programmes

    The event also featured remarks from the President of the Institute of Chartered Accountants of Nigeria (ICAN), Mallam Haruna Nma Yahaya, who described Olorunleke as “the man of integrity,” noting that his contributions to national development extended beyond professional leadership. “He exemplified vision, fairness, and integrity, leaving an enduring mark on the nation’s tax administration,” he stated.

    Zacch Adedeji, the current FIRS boss, represented by Mr Femi Oyebamiji, highlighted that the deceased embodied integrity, clarity of purpose, and a commitment to public service.

     “Throughout his career, he mentored many, inspired countless others, and left an indelible mark on the institution he helped build. His passing is not only a loss to the tax community but a personal one for many. He was a guiding figure for all who benefited from his wisdom and kindness. Although he is no longer with us, the values he championed—professionalism, humility, discipline, and service to the greater good—remain his lasting legacy.”

    Earlier, Kwara State Governor AbdulRahman AbdulRazaq, represented by Deputy Governor Kayode Alabi, urged attendees to “seek the virtues and lessons from the life of the late Olorunleke” and to live up to the legacy he left behind.

    Chief Olorunleke, who passed away at the age of 80, is remembered as the “Doyen of Taxation,” whose impact on Nigeria’s fiscal landscape remains unmatched. He was not just the pioneer and longest-serving President of CITN but a significant figure in the development of tax practice in Nigeria.

  • FIRS orders banks to sweep accounts of tax defaulters into Federation Account

    HIGH-PROFILE tax defaulters got a 30-day window to regularise their tax status with the Federal Inland Revenue Service (FIRS), failing which they risk forfeiting the tax equivalent directly from their bank accounts to the Federal Government

    The FIRS Executive Chairman, Tunde Fowler who dropped the hint on the Nigerian Television Authority (NTA) programme – Platform, said that banks have been instructed to “sweep the accounts of tax defaulters into the Federation Account after 30 days.

    According to Fowler, the FIRS has written 23,000 letters to high-profile tax defaulters, whose names appeared on the list of defaulters.

    The accounts of the identified defaulters have been put on lien.

    Read Also: FIRS contributes 59.7 percent to Federation Account- RMAFC

    Some of the letters, he said, have not been delivered because the addresses of the defaulters may have changed, adding that “the FIRS is determined because as the Service is backed by law to sweep the equivalent of what such tax defaulters owe into the federation account.”

    The FIRS boss noted that since the bank lien on tax defaulters’ accounts was initiated 60 days ago, the Service has granted an additional 30 days – making it 90 days – for the defaulters to regularise their tax status.

    “At the end of the 90 days”, Fowler warned, “banks will be asked to sweep the tax owed into the Federation Account.”

     

  • Kudos for Fowler over FIRS reforms

    Aseasoned economist and retired director in the federal civil service, Dr. Aina Iluyomade, has lauded the management of the Federal Inland Revenue Service (FIRS) led by Mr Tunde Fowler introducing reforms that have not only led to reduction in cost but has improved revenue generation to the Federal Government.

    He urged the Service to sustain the reforms in order to boost revenue and enable the government meet the 2019 budget expectations.

    Recent World Bank reports downplayed the economic prospects of Third World nations particularly mineral-dependent economies in this financial year.

    But speaking on the sidelines of a national workshop on the revenue and growth opportunities in the telecom sector, Iluyomade said steady increase in the nation’s tax revenue in the past three years is an indication that the economy is equipped to withstand whatever shock from the international commodity market.

    From the N3.3trillion in 2016 to N4trillion generated in 2017, the FIRS netted over N5.3trillion last year.

    Whereas contribution from oil tax averaged less than 40 per cent, non-oil taxes accounted for 60 per cent.

    Analysing the statistics, Iluyomade attributed the improvement in revenue generation to the adoption of modern infromation technology (IT) tools to drive operations even while introducing drastic measures to cut down on the costs of tax collections.

    “Whatever it is worth, one must appreciate the innovation made by Mr Fowler at the FIRS since he took over. At a time of economic contraction caused by a severe recession experienced by the country in 2015, it is a thing of a miracle that the service has been able to nearly double revenue in the past three years,” Iluyomade said.

    Sweeping reforms introduced at the FIRS include automation through the electronic tax pay solution, a self-service channel available on all commercial banks internet banking platforms aimed at complementing the existing manual method.

    The former top bureaucrat, whose autobiography will soon be presented, also cited aggressive cut-cutting measures in operations as a factor responsible for the steady increase.

    “My finding is that the cost of chasing revenue has been cut down drastically by Fowler. You know before he came on board, the practice was to release lump sum of money for hundreds of offices maintained by FIRS across the federation in the name of operations monthly.

    “What did they mean by operations? It is a cost the head of such branches have discretion over to buy diesel and petrol. But that still did not stop reports of inefficiency in such stations as some outstation officials were citing lack of diesel to power generators in the office and lack of fuel in their operational cars as the reason they were not meeting revenue target.

    “So, being a sensible man, what Fowler did was to first of all cut down that monthly impress before putting in place a system to completely eliminate such abuse and enhance cost efficiency. Before long, the FIRS management introduced a voucher system by which operational vehicles go to designated filling stations for petrol across the federation and sign off vouchers which are now submitted to FIRS for payment directly at the end of the month. Same thing was done to the supply of diesel. Before you knew it, the abuse stopped and productivity improved. Operation costs fell by more than 60 per cent.

    “The good news is that many of the tax board at the state level have started keying into the template set by FIRS to boost their own revenue.”

    Iluyomade’s forthcoming book which chronicles his thirty years odyssey in the federal civil service is due for public presentation soon.

     

     

  • FIRS nets N5.3trn from taxes in 2018

    The Federal Inland Revenue Service (FIRS) has declared it collected a total of N5. 320 trillion from taxes in 2018.

    A statement from the FIRS said its Executive Chairman Tunde Fowler made the announcement in Lagos on Monday at a retreat with the theme: “Parliamentary support for effective taxation of the digital economy”.

    He also stated the agency is targeting N8 trillion for 2019.

    Fowler said: “The N5.320 trillion collection is the highest revenue ever generated by FIRS in history.

    “The highest in FIRS was N5.07 trillion generated in 2012. FIRS’ generation of N5.3 trillion is significant as it was at a period when oil prices averaged $70 per barrel.

    “Oil price was at an average of $100 to $120 per barrel between 2010 and 2013.”

    He added: “Non-Oil component of the N5.320 trillion is N2.467 trillion (53.62 per cent) while oil element of the collection is N2.852 trillion (46.38 per cent).

    “From audit alone, FIRS collected N212,792 billion from  2278 cases with a huge reduction in audit circle.

    “While we have been steadily increasing revenue collection over the years, our cost of collection has actually been going down.

    “In 2016 we collected N3,307 trillion, in 2017 we collected N4,027 trillion and in 2018 we collected N5,320 trillion.

    “Meanwhile, the cost of collection as a percentage of actual taxes collected has been reducing; in 2016 it was 2.6%, in 2017 it was 2.49% while in 2018 it was 2.14%.”

    The agency, he said, “has been making tremendous efforts in also increasing the amount of non-oil revenue it collects.

    “Non-oil collection has contributed 64.99% in 2016, in 2017 it contributed 62.25% and in 2018 it contributed 53.62%.

    “This represents the government’s focus on increasing non-oil sources of revenue and the diversification of the Nigerian economy.”

    To achieve this feat, the FIRS boss also stated various initiatives were implemented by FIRS to enhance tax administration and make taxation as easy as possible.

    Some of these innovations, he said, include FIRS deploying ICT initiatives that will enable a taxpayer to pay taxes from anywhere in the world, at any time.

    “With the e-payment channel one can pay taxes with the click of a button and one can also download their receipts.

    ‘’Other e-Services are the e-Registration, e-Filing, -Stamp Duty and e-Tax Clearance Certificate.”

     

  • FIRS generates N5trn, targets N5.3trn by year-end

     

    The Federal Inland Revenue Service (FIRS) has generated N5 trillion as at the second week of December 2018, its Executive Chairman Tunde Fowler has disclosed.

    By the end of 2018, the agency said it should have made not less than N5.3 trillion.

    Speaking at the induction of new members of the Joint Tax Board (JTB) on Wednesday in Abuja, Fowler said: “This year, the FIRS, with the support of the Presidency, Ministry of Finance, the JTB and other stakeholders, has been able to generate up to N5 trillion.

    “We believe that we should be able to close at least at N5.3 trillion which should be the highest in the history of FIRS.

    “And we believe that with that additional revenue, the state and federal governments would be able to provide more services and more development to the people of Nigeria”.

    Fowler urged the new inductees of JTB to equip themselves with new ideas and embrace the Information and Communication Technology (ICT) to be able to face the reality of revenue collection in the ever-changing society.

    This new development, he said, “indicates that we should be able to develop the ability to accept and embrace positive change, maybe due to the fact that change is inevitable but more significantly that oftentimes, change presents us with the rare breaks that we can exploit to advance individual and collective goals and objectives.”

    The FIRS boss also stated that as the global society continues to transform in structure and process, especially with new technologies and ways of doing things, the role that has been presented before tax administrators in an emerging economy such as Nigeria are quite enormous.

    Developments in global politics and economics, he noted, “indicate a trend towards increased de-emphasis on proceeds from oil and other commodity exports.

    “Huge investments are being made everyday by more advanced economies towards seeking alternative energy sources; and sooner rather than later, oil as a mainstay of the nation’s economy will indeed no longer be sustainable, it is just a matter of time.”

     

     

  • FIRS to hand over 114 companies to Attorney General

    The Federal Inland Revenue Services (FIRS) has uncovered 114 companies that claimed that they are not aware of lands allocated to them.

    However, the FIRS has confirmed from the Abuja Geographical Information System (AGIS) that these lands were actually allocated to these companies and the Service has vowed to hand over these false claims to the Attorney General of the Federation for further action on the controversial lands.
    These disclosure was made by the Executive Chairman of the FIRS Mr. Tunde Fowler at the African Union high level panel on illicit financial flows from Africa which held in Abuja on Thursday.
    According to Fowler, “114 Companies claimed they were unaware of land allocated to them but  AGIS has confirmed the ownership for all the cases referred to them and we will soon hand these cases over to the Attorney General on the way forward.”
    Highlighting the benefits of curbing Illicit Financial Flows in Nigeria in particular, Fowler revealed that the “total tax debt recovered From January 2017 to 31st August 2018 is N3,631,949,050, broken down as From Nov 2016 – Dec 2017 Total collected – N1.9 Billion From Jan 2018 – Date N1.731 Billion.”
    With regards to the Issuance of tax notification obligation to Company Income Tax (CIT) Non-Compliant Companies that own properties and Identified Non-Filers for Abuja, Fowler stated that it issued 2,672 Demand Notices; 653 those Now Filing and N2.983 Billion as total payments for Demand Notices for Abuja Properties
    Fowler identified the Component of Illicit Financial Flows in Nigeria to include: Commercial Activities which are illegal flows from business activities that leads to hiding wealth, evading or aggressively avoiding tax, and dodging customs duties and domestic levies; Criminal activities: IFFs are often driven by criminal activities with the purpose of keeping the transactions from the view of law enforcement agencies or revenue authorities; Corruption: Money acquired through bribery and abuse of office by public officials are enormous and can be used to further develop different projects, and also increase taxation revenue collection.
    Other are, nature of IFF in Nigeria Payments of expatriates staff emolument and remuneration and failure to declare for personal income tax purposes such emoluments to the relevant tax authorities in Nigeria; Laundering of funds (often sourced illegally) through Real Estates transactions to acquire property in choice locations outside Nigeria; Illegal transfer of money out of Nigeria, via unapproved channels; Mispricing of goods and services transferred between interrelated Nigeria based companies (e.g. MNEs) and Individuals to offshore based entities and individuals; Profit Shifting – for instance through excessive interest payments on foreign and locally sourced loans and Mis-invoicing of imports and exports.
    Earlier, Mr Thabo Mbeki, former South African President and Chairman, United Nations Economic Commission for Africa’s High Level Panel on IFF said that Africa looses about $80 billion annually through IFFs.
    Mbeki, who is also a former South African President, said the huge sums came from proceeds of commercial transactions through multinational companies, criminal activities and corruption.

    Read Also: FIRS to amend controversial insurance law

    According to him, illicit financial flow had posed developmental challenges on the continent, in terms of draining hard currency reserve, reduced tax collection, deepening income gap, depleting investment and weakened governance.
    He harped on the need to strengthen institutions like the Revenue Service Agencies, Customs Services and the legislation,  to enable them tackle better, incidences of money laundering as well as other forms of IFFs.
    Meanwhile the Minister of Finance, Mrs Zainab Ahmed said that IFFs have robbed Africa of the wealth and resources needed to invest in infrastructure, education, hospitals, electricity and many other necessities for sustainable and inclusive economic development.
    Ahmed was represented by the Permanent Secretary,  Ministry of Finance, Mr Mahmoud Isa-Dutse.
    “The quest for Africa’s economic development will be accelerated if funds illegally acquired, stolen and hidden abroad by illicit finance flow perpetrators are repatriated.
    “Our development will no doubt receive a leap if Multinational Corporations desist from illicit activities of aggressive transfer pricing, base erosion, profit shifting and trade mispricing.
    “As indicated in the 2015 High Level Panel Report, the challenge of combatting IFFs is particularly pronounced in countries such as Nigeria, due to the dominance of the extractive industries in the economy.
    “In this regard, the work of the Nigeria Extractive Industries Transparency Initiative (NEITI), which I used to head, as well as the Federal Inland Revenue Service, whose operations the Ministry of Finance oversees, are relevant,” she said.
    Ahmed also said that to address IFFs within the context of taxation, the FIRS, several years ago, introduced Transfer Pricing Regulations to curb the incidence of aggressive transfer pricing practices and enthrone the “Arms-length” Principle in the cross-border trade practices of multinational corporations, as well as indigenous firms.
    In addition, she said that the Voluntary Asset and Income Declaration Scheme (VAIDS) initiative which ended in June 2018, was a tax amnesty programme aimed at raising tax revenues, regularizing the tax status of citizens and bringing concealed tax assets into the national tax base.
    “Furthermore, the Federal Government is collaborating with several countries in terms of sharing information on Nigerians who own properties and bank accounts abroad.
    ” We also run a programme for the Automatic Exchange of Tax Information with the United Kingdom.
    “In addition, we have signed agreements on the Multilateral Competent Authority on the Common Reporting Standard which is a platform for exchange of financial accounts information.
    “This will come into effect as soon as the legal framework is finalized,” she said.
    Ahmed also informed the panel that in July 2018, President Muhammadu Buhari signed the Nigeria Financial Intelligence Unit (NFIU) Bill into law.
    She said that the NFIU would ensure autonomous and independent agency monitoring of cross-border financial flows with a view to identifying and intercepting suspicious transfers.
    The Unit is also empowered to fight the funding of criminal activities, money laundering and terrorism through the international and domestic financial system.
    “To aid us in our efforts, it will be appreciated if the HLP will share its experiences in domesticating international best practices in the key sectors of our economy with respect to IFFs.
    “In this regard, Nigeria stands to gain much from initiatives such as the European Union’s country-by-country reporting (CbCR) transparency measures. By requiring companies that are of a particular size or operate in certain industries to publish operational and tax data for each country in which they do business.
    “Governments such as ours would be better equipped to check the incidence of aggressive tax-planning strategies, adopt more targeted and risk-based tax audits, and persuade large multinational corporations to voluntarily reduce the magnitude of their tax avoidance,” she said.
    Also, the Minister of Justice, Mr Abubakar Malami said that Nigeria had put in place institutions, legislations and technology expertise to minimize IFFs in the country.
    “We established the EFCC, ICPC, Code of Conduct Bureau, Code of Conduct Tribunal and the Financial Intelligence Unit, and backed them with laws, to ensure that Nigeria wins the fight against corruption and IFFs.
    “We have also deployed technology in this fight.  For example, we have deployed BVN in the banking sector, to identify the real owners of bank accounts.
    “Also, the TSA and the IPPIS were deployed to ensure that the Federal Government resources are prudently managed,” he said.

  • FIRS to partner on modern tax innovation, manpower development

    The Executive Chairman of the Federal Inland Revenue Service (FIRS), Tunde Fowler has promised to deploy the required resources and facilities to upgrade the capacity and operational base of Benue Internal Revenue Service (BIRS).

    He also proposed to sponsor a one week training session by FIRS for management and staff of the State Tax Agency at any location of its choice within the country as a way of exposing them to all modern global tax administration and practices.

    Speaking further in his office in Abuja when he received his former Assistant Director of Planning Research and Statistics department and the new Acting Executive Chairman of BIRS, Mr. Terzungwe Atser, Fowler charged tax authorities in the country to explore other strategies of revenue generation to raise enough Internally Generated Revenue (IGR)  that would enable them take up the task of funding budgets of their various states.

    Mr. Atser who led management of BIRS on the courtesy visit thanked the FIRS Chairman for the opportunity to serve under him and his magnanimity to promptly granting his request for release to Benue State government.

    “I am mostly grateful to you Mr. Chairman sir, for your prompt approval and permission to my request to serve my State as the Chairman of the Revenue Service.

    “As I resume duty at BIRS, I humbly further request the support and a sustained partnership with FIRS to raise the standard of our operations in the State”, he said.

    Read Also: States owe FIRS N41b tax

    According to Fowler, “we do have a relationship with BIRS and some of the things that we do are not new to you since you have been part of it.

    “We are willing to partner BIRS on management and staff training as well as the provision of the required equipment and facilities to boost the operational base of your agency”, he stated.

    Expressing his profound gratitude to the Benue State governor, Samuel Ortom for finding one of his dedicated staff worthy for the appointment as Chairman of BIRS,  Fowler said he is very optimistic that Benue IGR will witness significant improvement.

    He restated that FIRS will sustain the existing relationship with BIRS assuring that his office will also provide all required support to ensure the successful tax operation and administration of the Benue State Revenue agency.

    He stated further that FIRS has set up a solution based platform through the Joint Tax Board (JTB) where all States tax agencies are encouraged to take advantage of it for easy online operation.

     

  • FIRS nets N4.03tr in 2017

    FIRS nets N4.03tr in 2017

    …collects N720bn more than 2016 collection

    The Federal Inland Revenue Service ( FIRS ) said it collected a total of N4.03 trillion in 2017.

    This figure represents 82.38% of government set target of N4.89 trillion for the last year.

    A statement signed by Wahab Gbadamosi, Head, Communications and Servicom Department of the Service said “FIRS’ collection of N4.03 trillion is N720 billion (22%) more than the 2016 total collection figure of N3.305 trillion. The 2017 collection performance exceeded the 2016 collection performance of 78.75%.”

    Executive Chairman of FIRS, Mr. Tunde Fowler was quoted to have said “with the support of the National Assembly, and that of other stakeholders, FIRS was able to collect over N4 trillion in 2017. This is an increase of over 20 per cent relative to our collection in 2016. We are hopeful that going forward, FIRS will be able to fund this country through taxation.

    Going back memory lane, the FIRS Chairman recalled that when he was the Lagos Internal Revenue Service, LIRS Executive Chairman, the Oba of Lagos played an important role in tax collection. Apart from supporting LIRS morally, Fowler recalled that Oba Akiolu mandated the White cap chiefs to accompany LIRS officials to key markets and most parts of Lagos to sensitise the people on tax collection.

    The FIRS Chairman shed light on FIRS’ collection in 2017: “we all recall that beginning from the second half of 2014, there has been a sustained decline in the global prices of oil. Oil Revenue Generated by FIRS in 2014 – 2.45 Trillion; Oil Revenue Generated in 2015 – N1.29 Trillion; FIRS Oil Revenue Generated in 2016 – N1.16 Trillion; FIRS Oil Revenue Generated in 2017 – N1.52 Trillion.”

    This trend he said had adverse effect on the ability of oil dependent countries to meet their development objectives. “For us in Nigeria, the decline in receipts from oil revenue and the concomitant decline in accruals to States from the Federation Account has placed many States in a financial quandary to the point where basic obligations such as the payment of employee wages has become a perennial challenge. This is not the first time Nigeria will experience economic slow-down as a result of fluctuations in global oil prices.”

    Fowler noted that the FIRS under his watch “hopes to ensure that we act differently this time around by looking beyond oil as the mainstay of our economy. By putting our hands together in contributing to our set goal, I am confident that we will surpass our past results and we’ll be well on our way to the future we hope to achieve.”

    Fowler noted that though collection increased by 20 per cent relative to 2016, the Cost of Collection went down to 2.49 per cent in 2017 relative to the 2.60 per cent cost of collection in 2016 and   2.62 in 2015. This, the FIRS Chairman noted, attests to the growing efficiency in collection by the Service and to which the embrace of Information, Communication and Technology (ICT) tools contributed.

    On his part, the Oba of Lagos noted that 60 or 70 per cent of FIRS collection comes from Lagos, to this end he said he will be sending a letter to Senate President Bukola Saraki to draw his attention to the 1851 treaty, which the colonial government signed with Oba Akintoye: that three per cent of all taxes collected in Lagos will go to the Oba, while 2 per cent of all exports will go to Oba Akintoye. “While I am not asking that this be paid to me now, it could be paid to the Lagos State Government”.

    The Oba who said he lives by example stated that he pays as much as N350 million in tax every year.

    Nigeria he said now needs good governance that will deliver development to the people. “FIRS has collected N4 trillion and they will collect more in the futures. The legacy that Tunde Fowler has made in Lagos is still felt but you have more work to do,

    Lagos does not discriminate against anybody just as the state will not accept any injustice from any quarters.”

    He enjoined Senators and members of the House of Reps to dialogue with and give, President Muhammadu Buhari a chance as he loves Nigeria. He also called on the federal parliamentarians to support the anti-graft war by confirming the Economic and Financial Commission Chairman, Ibrahim Magu. Nigeria, the monarch assured will not break.

    The FIRS contributed N2.78 trillion to the Federation Accounts. Representing 99.5% of the target for 2017 (7.5% higher than 2016 performance).

    An analysis of the collection performance indicates that non-oil accounted for 63% while oil tax accounted for 38% of the total collection. Stamp Duty recorded the most increase in performance with 94%.

    The achievements recorded by the FIRS from the administrative and operational initiatives introduced by the Executive Chairman, Tunde Fowler in 2015 and 2016 were designed to reposition the agency.

    The 2018 Ease of Doing Business report, released by the World Bank Group late last year, shows that Nigeria moved up 11 places in terms of the ease of paying taxes. This contributed to Nigeria’s movement by 24 points/places in the (from 169th to 124th position in the Ease of Doing business globally.

    The initiatives which directly impacted on business owners, implemented by the Service with the support of the Presidential Enabling Business Environment Council ( PEBEC ) contributed to Nigeria’s upward movement in global ease of doing business ranking.

  • Fowler: Fed Govt earns N16.9b from VAIDS

    The Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, yesterday said the Voluntary Assets and Income Declaration Scheme (VAIDS), has generated N16.9 billion into the coffers of the Federal Government.

    Speaking at an interactive session for review of 2018–2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) in Abuja, he said the agency recorded 79.35 per cent (N3.233 trillion) of its 2017 target within 10 months, adding that the FIRS already had strategies for achieving its objectives in the 2018 budget.

    The programme was organised by the House of Representatives Committee on Finance and Appropriations.

    He also said the FIRS justification for 2018-2020 revenue frameworks was based on the Federal Government’s Economic Recovery and Growth Plan.

    Fowler said the tax assessment carried out between 2013 and 2015 showed that N1 trillion was raised and that the collection from tax audit exercise stood at N36.59 billion.

    According to him, this exercise has yielded N3.7 billion to government coffers and is an indication that FIRS would meet the assumptions in the 2018-2020 MTEF.

    He said the new modalities structured for optimal access of receivable dues from the scheme had yielded over $54 million (N16.73 billion) and N207.41 million, totalling about N16.93 billion at the federal level only.

    Fowler said: “We have stepped up enforcement activities against task defaulters on different fronts; these include placing non-compliance stickers on business premises of taxpayers with outstanding amounts but made no move to liquidate it.

    “We also adopted substitution as enforcement tool by putting a lien on the bank account of errand taxpayers.

    “This in my view will serve as a deterrent to defaulters and consequently increase tax collection.”

    VAIDS, which gives tax defaulters a window to regularise payments, will close in March next year.

    In a statement released at the weekend, Finance Minister, Mrs. Kemi Adeosun, said 500 letters will be sent to defaulters and thousands more will get such letters.

  • Fed Govt eyes N1.8tr from VAT collection

    Fed Govt eyes N1.8tr from VAT collection

    The Federal Inland Revenue Service (FIRS) has projected N1.8 trillion Value Added Tax (VAT) collection for the 2017 fiscal year.

    Its Executive Chairman, Tunde Fowler, made the projection yesterday at his 2017 budget presentation to the Senate Committee on Finance during budget defence.

    The FIRS chief told the committee that the budget focused on capacity to increase VAT and other non-oil revenue.

    He noted that principally, VAT is expected to grow from  N828 billion to a budget of N1.8 trillion which is over 125 per cent increase.

    He also told the committee that the achievement of the 2017 budget will be driven largely by VAT collection.

    He said: “The Service, in realisation of this responsibility and challenges of doing manual collection, have automated VAT collection for the critical sectors of the economy notably telecommunications, airlines and financial institutions.”

    Fowler said the deployment of the platforms is at no cost to the Service while the consultants will only be rewarded on incremental revenue generated.

    He told the committee that the Service proposed to collect tax revenue target as derived from Federal Government 2016-2018 Medium Term Revenue Framework (MTRF) for 2017 amounting to N4.89 trillion.

    Fowler said the budget for oil revenue dropped by nine per cent over 2016 ‘actual’ due to low oil price that operated in the year.

    On budget parameter, the FIRS chief said the 2017 projected cost of collection of N153.44 billion is higher than the 2016 approval estimate which stood at N143.90 billion.

    The figure, he said, represents a cost of collection increase of 6.63 per cent on overall projected non-oil revenue including VAT, stamp duties and levy.

    Fowler urged the Senate to approve “the surplus budget of N848billion arising from an expected total revenue of N153.4 billion over expenditure of N152.6 billion.”

    On the revenue projections performance for January to June 2017, the FIRS chief said the analysis showed that the Service has recorded an increase of N224 billion representing an overall increase of 14 per cent in 2017, when compared with the collection performance for the corresponding period of last year.

    “We have therefore achieved 72.93 per cent of our half year target of N2.44 trillion for 2017 as against 74.2 per cent of N2.1 trillion for the corresponding period in 2016.

    He put tax collection between January to June 2017 at N1,782,922,600.000 with variation of N224,140,900,000 giving 14 per cent increase of the same period in 2016.

    He said: “The chairman may note that we attained this collection performance despite several challenges, as we have continued to vigorously pursued our strategies internally wile improving collaboration with relevant stakeholders to boost our collections.