Nigeria- $500m more coming from non-oil taxes

Nigerian President Goodluck Jonathan

Nigerian President
Goodluck Jonathan

 

 

 

 

 

 

 

The Federal Inland Revenue Service (FIRS) plans to rake in additional S500 million from non-oil tax collection this year, the Acting Executive Chairman, Alhaji Kabir Mashi, has said.

Alhaji Marshi, who made known yesterday in Abuja at the maiden retreat and enlarged management meeting organised for  top management of FIRS, said the drive for increased revenue from non-oil tax will be initiated through the Capacity Enhancement Programme (CEP).

He said: “It is necessary to improve upon non-oil tax collection for a number of reasons, major among which is the increasing global need to reduce the over-dependence on oil revenue.

“Government is targeting revenue accruals of N1.789 trillion from Petroleum Profit Tax (PPT), N1.030 trillion from Companies Income Tax (CIT), N96 billion from CIT on gas, N861 billion from Value Added Tax (VAT) and N10.21 billion from Capital Gains Tax, while N8.46 billion is expected from stamp duties, and Education tax, personal income tax and technology levy are expected to contribute N156 billion, N59billion , N10.6 billion respectively to make up total government’s target of N4.21 trillion.”

To achieve these targets, the FIRS boss challenged his staff, saying, ”there is work to be done. We have on-going nationwide VAT and Withholding verification exercise, and depending on the gains from this exercise, we may extend this later in the year.”

Shedding light on last year’s performance, Marshi stated that though the FIRS surpassed its revenue target for 2013 by N337 billion, or 7.56 per cent, he regretted that the performance was below the Service’s target of N5.803 trillion, or  17.18 per cent.

“A closer review of the figures of our non-oil collection will reveal an actual collection of N2.139 trillion, which falls short of the government’s target of N2.188 trillion by about three per cent.”

Meanwhile, as plans kicked for the seventh Joint Annual Meeting of the African Union-Economic Commission for Africa conference in Abuja, today, African Civil Societies Organisations have called on African governments to end the use of tax incentives to woo investors.

The CSOs said tax incentives provided by many African countries to investors could trigger illegal movement of money among African countries.

The Representative of the African CSOs consultative forum, Mr Kola Banwo, said evidence has shown that tax incentives are not required to attract foreign investment in most African countries, argued that “estimates from studies conducted by ActionAid, showed that $138 billion was given away by governments in developing countries every year as statutory income tax exemptions”.

The coalition urged African countries to demand an inclusive and multilateral global tax reform process in which effective participation of all stakeholders, including civil society organisations are guaranteed in shaping the new international tax rules.”

They urged on African countries to protect their revenue bases and review their double taxation treaties, adding that illicit financial flows have continued to deprive the continent of funds for progressive and gender responsive services.

 

( Courtesy The Nation & Federal Govenment of Nigeria…….Source……Our Business Freelance Contributor in Abuja, Nigeria )

About the Author
Moses M'Bowe, is the Chief International Correspondent, For New Africa Business News And New Africa Daily News.

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