An official of the Federal Inland Revenue Service (FIRS), Loveth Ononuga, says that 85 per cent of the proceeds of the Value Added Tax (VAT) go to the 36 state governments of the Federation.
Ononuga, who is the FIRS Director, Taxpayer Service Department, further stated that the Federal Government retains just 15 per cent of the funds.
Ononuga, who spoke at a “One-Day Strategic Tax Communication Session” organised by the Service in Abuja on Friday, therefore tasked Nigerians with active participation in governance by holding their leaders, especially state governors, accountable for their financial expenditure.
Ononuga underscored the importance of tax payment, saying the government, especially the present administration, has prioritised critical infrastructure as manifested in the ongoing road construction across the country.
She said the government was working to harmonise tax collections to tackle the issue of multiple taxation and illegal taxes, adding that when passed into law, the four proposed tax bills will address the menace.
The Director, Communications and Liaison Department, Abdullahi Ismaila, had earlier lamented the tax payment culture of Nigerians, which he said was too low, stressing the need for awareness to bring more taxpayers into the nation’s tax net.
Through clarity and consistent communication, Ismaila said the people can begin to see reasons why they should not renege on such a responsibility.
He praised the present administration for introducing the four tax bills, saying the previous tax laws were obsolete, hence the need for modernization to suit modern needs.
In his presentation titled “Effective Communication Strategies for Tax Awareness,” the director emphasised the need to educate taxpayers on tax laws in the most suitable language and the use of simple tax language for effective communication to achieve desirable results.
The event aimed to abreast media practitioners on the technical aspects of tax reportage, which is integral to transparent, compliant, and effective tax administration.
It is hoped that by establishing robust data management systems, adhering to international best practices, and embracing innovative communication strategies, tax authorities can significantly enhance public engagement and trust.