Finance Minister Commends Fowler As FIRS Rakes In N13 Billion From Billionaire Defaulters
Less than a month after it commenced its substitution and payment for recalcitrant billionaire taxpayers, the Federal Inland Revenue Service (FIRS) has collected about N12.66 tax revenue, the Executive Chairman, FIRS, Tunde Fowler, has on Friday.
He disclosed this when he received the new Minister of Finance, Hajia Zainab Ahmed at the Revenue House.
Fowler spoke as the minister said commended the agency for shoring-up the non-oil revenue.
“The Ministry of Finance will continue to work collaboratively with FIRS to support all the efforts that you are doing. And as much as possible, we should interface frequently. For us, the directive I have is to increase the tax revenue and that is the most important task ahead of all of us. You have done well. And the reward for good work is more work”, she said.
Hajia Ahmed urged the FIRS to “maintain the tempo” because literarily, the country depends on the work that FIRS does to shore-up the revenue collection to support the government.
She encouraged all government agencies to work together to fish out all corrupt persons in the country, stating that this is the directive of President Muhammadu Buhari.
“The FIRS is a very important agency of government. I wanted to underscore this importance. FIRS is one of the first agencies in the Ministry of Finance that I am meeting. The Federal Government Medium Term Plan is hinged on diversifying the economy away from the oil revenues to non-oil sector. And the report that the Executive Chairman of FIRS has presented indicates that the diversification effort is working. This is reflected in the turn of the contribution of non-oil revenues over the last three years.
“I am happy that we have a team in FIRS that is not only expanding the revenue base but also significantly improving tax collection and taking tax offices closer to the people and making it easier for the people to pay their taxes by online and e-tax payment procedures that you have undertaken. And I am sure that, from what I have heard today, that you would continue with all these processes.
“I am also glad that you are increasing cooperation with several agencies like the EFCC, ICPC and Nigeria Customs Service. This is important because the directive from the president for anti-corruption involves cooperation within yourselves as well as with anti-corruption agencies. It makes a lot of sense to priotise tax collection to larger categories: from the big ones to other ones. The effort you are doing in Abuja, Lagos and Osun is a commendable one and I encourage you to maintain the tempo in generating tax revenues”, she said.
She said the country needs to continue with the effort to strengthen the non-oil sector, stating that the part that FIRS should play is to continue with its effort so that the non-oil sector would generate larger part of the tax revenue on sustainable basis.
About a month ago, the FIRS in collaboration with other stakeholders launched the initiative to freeze the bank accounts of High Networth companies which fail to pay their taxes promptly.
Fowler told the minister that the initiative has pooled about N12. 66 billion into the government coffers.
“FIRS wrote to all commercial banks in May 2018, requesting for a list of Companies, Partnerships, and Enterprises with a banking turnover of N1 billion and above. This activity is aimed at ascertaining those companies that are complaint with the Tax Laws and those that are not complaint. So far, non-compliant organization have paid about N12.66 billion.
“The FIRS will continue to implement initiatives that will drive compliance and generate revenue by continuous taxpayer enlightenment, implementation of the Auto VAT Collect in other sectors of the economy, simplification of the tax processes especially for small taxpayers, strengthening collaborations with other agencies such as CAC, States Boards of Internal Revenue, Ministry of Trade and Investment, Nigeria Customs Service”, Fowler said.
The FIRS Chairman also told the minister that the Service realised the sum of N2.983 billion from payment on demand notices on property owners who are being assessed based on their turnover and that 653 of 2, 672 of such non-filers have starting filing now.
From enforcement, Fowler said FIRS has collected a total of N47.5 billion from 2016 till date and $32.8 million, £5.9, netted N225 billion from audit and has collected more than N1 trillion above its January to August collection last year.
He said that FIRS collection of N4.03 trillion in 2017 has 62.25 percent as non-oil while oil is just 37.75 percent. It was 64.99 in favour of non-oil in 2016 and 35.01 for oil. In 2018, the FIRS has done 54.56 percent for non-oil and 45.44 percent for oil receipts.
Fowler added that Value Added Tax (VAT) receipt is on a steady increase. “So far in 2018, the FIRS has collected 773.49bn in eight months. The above collected this year has already surpassed that of 2015 (767.33bn), and is set to surpass 2016 (828.19bn), and 2017 (972.30bn) with four more collection months left in the year.
“e-stamp duties collection is on a steady increase. So far in 2018, the FIRS have collected 10.10bn in eight months. The above collected this year has already surpassed that of 2017 (10.9bn), 2016 (5.6bn), and 2015 (7.1bn)”.
Head, Communications and Servicom Department
Federal Inland Revenue Service (FIRS)