Over 50% registered companies evade education tax, says TETFund boss
Spends N156.3b on special intervention projects
The Tertiary Education Trust Fund (TETFund) has alleged that over 50 per cent of the registered companies in the country are evading the two per cent education tax.
Executive Secretary of TETFund, Dr. Abdullahi Bichi Baffa, who made this known yesterday in Abuja when the Senate Committee on Tertiary Institutions and Services visited the agency, listed the dwindling collection of the two per cent education tax as one of the challenges of the fund.
According to Baffa, the falling price of crude oil and the inability to access the portal of the Federal Inland Revenue Service (FIRS) to know what is paid in real time for easy reconciliation are the other problems being faced by the fund.
The TETFund boss said it had so far allocated N156.3 billion to its special intervention projects in the nation’s public universities, polytechnics and colleges of education.
Baffa said the fund expended the billions of naira to boost physical infrastructure in the tertiary institutions through annual direct disbursement and the high impact projects.
He said: “For the universities, we have allocated about N74 billion and we have disbursed about N57.7 billion and there is a balance of N16 billion; for the polytechnics, N40 billion was allocated, N31 billion disbursed and about N8.6 billion balance.
“For the colleges of education N41.5 billion was allocated, N32.8 billion disbursed and about N8.6 billion outstanding. In total, we have allocated N156.3 billion,” he said.
The Senate Committee chairman, Senator Barau Jibril, who condemned the lukewarm attitude of most tertiary institutions in accessing TETFund grants, called for a policy that would stipulate sanctions for such schools.
“I think we need to have a definite term, that if any institution fails to access the fund because of lukewarm attitude there will be sanctions,” he said.
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