By Tony Obiechina, Abuja
The Executive Chairman of Federal Inland Revenue Service (FIRS), Mr Tunde Fowler has disclosed that the states have recorded a leap in their Internally Generated Revenue (IGR) from N800 billion in in 2016 to N1.16 trillion in 2018. This amounts to 46.11 percent in four years.
Fowler who made the disclosure on Thursday, also said that Nigeria’s tax database has increased from ten to twenty million, with a target of 45 million taxpayers nationwide by December, 2016.
Speaking at the North Regional launch of the New Taxpayer Identification Number (TIN) Registration System and consolidated national tax database programme, Fowler who is also the Chairman of Joint Tax Board (JTB), noted that the new system also provides immense benefits to thetaxpayers.
A statement from FIRS in Abuja, quoted the Executive Chairman: “The consolidated database apart from providing a unique identity to the taxpayer also facilitates ease of compliance. It limits the incidence of double taxation and is a prerequisite for a number of transactions such as sale and purchase of immoveable property, registration of vehicles, applications for plot of land,import and export licence, registration as a contractor, entry visas among others. Ultimately, the system promotes the ease of doing business for both individuals and corporate bodies”.
Fowler listed the achievements of the JTB during his tenure to include:
*The expansion of the tax base from 10 million to 20 milliontaxpayers with the potential for an increase of up to 45 millionbefore the end of the third quarter of 2019; A growth in the IGR ofStates by over 46.11% from N800.02 billion in 2016 to N1.16 trillion in 2018; A growth of FIRS collections by 53.81% from N3.30 trillion in 2016 to N5.32 trillion in 2018; with the 2018 total collection of N5.32 trillion being the highest collection ever in the history of theFIRS, while Non-Oil Revenue, with a collection of N2.85 trillionaccounted for 53.63% of total revenue collection;
*Payment by the Federal Government of the total sum of N135.8 billion representing all outstanding PAYE tax liabilities owed by Federal MDAs to States from 2002 to 2016; with a total of N31.08 billion paid to the States in the North-Central Geopolitical Zone. We are confident that this gesture by the Federal Government will encourage State Governments to also reciprocate and promptly remit all Withholding Taxes and VAT due to the Federation Account;#. A positive movement during the same period by Nigeria up 25 points in the Tax Administration Section of World Bank ‘Ease of Doing Business’. This positive progression is also reinforced by the recent listing of Nigeria as one of the ‘top 20 improvers in Doing Business for the year 2020’ by the World Bank. We expect that more positive country reports will be released by the time the full report by the World Bank is released in October 24th, 2019.
“The TIN Registration Go-Live event which has brought together all Tax Authorities with a common vision and goal, is poised to change the financial profile of Nigeria and particularly, lay a strong financial foundation to fund government at all tiers beyond aid, grants and borrowing”, he said.
“The New TIN Registration System is geared towards reinforcing thelaudable efforts of this administration towards building a robust tax-revenue administration system for the country and it aims to improve the ease of tax compliance while ensuring a sustainable andinclusive economy for all Nigerians.
