The Chartered Institute of Taxation of Nigeria (CITN) is seeking the collaboration of the Federal Inland Revenue Service (FIRS) in its quest to make taxation the foremost driver of revenue generation in Nigeria.
The CITN, in statement made available to BusinessDay, noted that FIRS has severally adopted unique innovative strategies and initiatives in the collection of VAT during the period (2015 – 2017) that led to approximately 40 percent increase over 2012 – 2014 collection figures.
The various initiatives included ICT innovations, taxpayer education, taxpayer enlightenment and evaluation, among others.
Adefisayo Awogbade, registrar/Chief Executive, said CITN as the only tax professional regulatory body in Nigeria, had keenly observed that since August 2015, the FIRS target for two major non-oil taxes were increased by 52 percent for Value Added Tax (VAT) and 45 percent for CIT, the statement quoted him as saying.
This period, he said, has not only witnessed increase in absolute collection figures, but has more than ever increased Tax Payers base and has brought Tax compliance consciousness to the Nigerian populace, amongst others.
“As part of our tax review mechanism, our Institute exudes confidence that the current strategies and initiatives will improve revenue collections and meet the expectations of the Government. It is 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,” Awogbade said.
The registrar said the FIRS had done credibly well and needed to be commended for these giant steps by government and all well-meaning Nigerians. The job of Tax collectors is a tough one as tax payers do loathe them, it noted.
“We are convinced that we have made some progress but yet to reach our objectives as regards taxation in Nigeria. We urge the FIRS to join hands with CITN in its avowed quest to make taxation the foremost driver of our revenue generation in Nigeria,” he noted.
He explained that while the FIRS only has control over non-oil revenue from taxes collected, Oil revenue collection figures are subject to more external forces such as the price of oil in the international market, which itself is subject to a myriad of factors beyond the control of local fiscal policy and jurisdiction. The Nigerian National Petroleum Corporation (NNPC) has the sole responsibility for upstream and downstream developments, and is also charged with regulating and supervising the oil industry on behalf of the Nigerian Government.
Between 2012 – 2014 oil revenue accounted for 57.28 percent while non-oil revenue accounted for 42.72 percent, whilst for the period between 2016 – 2018, oil revenue accounted for 40.65 percent while non-oil revenue accounted for 59.33 percent of collected revenues.
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