CITN offers FIRS complementary role in tax drive
Says more work is needed to rev up collections
The Chartered Institute if Taxation of Nigeria (CITN) has said the nation’s tax system has witnessed some progress, but yet to reach the desired objectives as regards taxation in the country.
Besides, it has offered to sustain its support for the Federal Inland Revenue Service (FIRS), in its avowed quest to make taxation the foremost driver of the country’s revenue generation.
The Registrar/Chief Executive of CITN, Adefisayo Awogbade, said the institute was aware that the revenu agency has severally adopted strategies and initiatives in the collection of taxes in the last four years.Citing examples, he said that strategies for Value Added Tax (VAT) collections during 2015 – 2017, led to approximately 40 per cent increase over 2012 – 2014 collection figures.
FIRS generated N311.94 billion revenue for government through the collection of VAT, between April and June, data from the National Bureau of Statistics (NBS) showed.The figure represents a 7.9 per cent quarter-on-quarter increase from the N269.79 billion generated in Q1 of 2019, and 16.95 per cent year-on-year.
The manufacturing sector generated the highest VAT figure, bringing in a total of N34.4 billion. Professional services delivered the second highest with N29.58 billion, while commercial and trading, which placed third, generated N16.27 billion.In the fourth place is the textile and garment, which generated N316. 91 million. The pharmaceutical sector brought in N250.09 million, while mining generated N50.6 million, the least amount.
Of the total VAT collection for the quarter, the sum of N151.56 billion was generated as non-import VAT locally and N94.90 billion as non-import VAT for foreign. The balance N65.48 billion was generated as NCS-Import VAT.
Between 2012 – 2014 oil revenue accounted for 57.28 per cent and non-oil revenue accounted for 42.72 per cent, while for the period between 2016 – 2018, oil revenue accounted for 40.65 per cent while non-oil revenue accounted for 59.33 per cent of collected revenues.“The various initiatives included ICT innovations, taxpayer education, taxpayer enlightenment and evaluation.
“CITN, as the only tax professional regulatory body in Nigeria, has keenly observed that since August 2015, the FIRS target for two major non-oil taxes- VAT and CIT, were increased by 52 per cent and 45 per cent respectively.“This period has not only witnessed increase in absolute collection figures, but has more than ever increased taxpayers base and brought tax compliance consciousness to the Nigerian populace amongst others.
“There has never been a time in the modern history of Nigeria that taxation has become a serious issue for conversation,” he said.He noted that as part of tax review mechanism, the institute is expressing confidence that the current strategies and initiatives of FIRS will improve revenue collections and meet the expectations of the government.
However, he hoped that with the adoption of more tax compliance strategies, the tax base will experience further widening to include more people, sectors and businesses into the tax net for enhanced revenue generation.Admitting that the the job of tax collectors is a tough one as tax payers do loathe them, he said the agency deserves commendations and encouragement to raise the bar further.
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