Thread by @firsNigeria

FIRS NETS N4. 012 TRILLION JAN – SEPT. 2019

The Federal Inland Revenue Service, FIRS, said it has collected the sum of N4. 012 Trillion in three quarters (January-September 2019), Executive Chairman, Tunde Fowler told Senate Committee on Appropriations today in Abuja.

The amount is 77.89 billion above the N3.941 trillion collected between January-September 2018.

Though the amount collected represents 60.77 trillion of the N8. 8 trillion target of the FIRS for 2019, Fowler is optimistic that FIRS will do better than the N5.3 trillion it collected last year.

At the 2020 National Budget hearing before the Senate Committee on Finance, Comptroller General Customs, Rtd. Col. Hameed Ali said the closure of Nigerian borders to a deluge of imports is not solely about revenue.

Rather it’s about the protection of Nigerians from bandit, illegal drug importers and merchants dumping expired rice and other products on Nigerians. “Even at that, we are not doing badly since we closed the borders. Before we closed the border, we were doing N4. 7 billion daily

If they do, he said, the over 40,000 taxpayers who have between N100 million and N 1billion as turnover in their accounts, who are not paying taxes will quickly pay their taxes. “Just a little over 3000 of the taxpayers who have lien on their accounts have paid N102 billion.

In Nigeria, if you have the courage to pass laws that will send tax defaulters to jail, the 40,000 tax defaulters will pay.
 
“In terms of whether revenues cannot be generated by enforcement, we have gone over various programmes to bring people into the tax net.

Before this in 2016, there was a tax amnesty in which 5000 companies came through &they also paid N92 billion within 45 days. VAIDS was also N90 billion. It took one year. The question I’d like to ask you is,can N90bn make a difference in a developed or even a developing country?

It will make a lot of difference. These are businesses or individuals that have income but had refused to pay taxes. Currently, we have close to 40, 000 of those accounts under lien for which they have not paid any taxes

“And I believe that this is a crime the society and I think that we are at that point now where we have no choice than to enforce payment. I did highlight earlier that 3000 of those accounts paid N102billion.

I think that we have reached that stage where the society in general should not condone those among us who have the opportunity and privilege to have a job or to earn profits and also accept them not to pay taxes to contribute to the society.

Fowler contended that it is not true that Nigeria has not given or is not giving incentives to small businesses.

“I will first start with incentives. It was true that the past government, the government before this one did give a lot of incentives.

And if you look at history of business and incentives regardless of which country you are in, businesses do no grow because of incentives, they grow because they believe that they can make profits and of course, they want certainty.

But in terms of incentives for the small scale businesses with turnovers of N25 million and bellow, within the Finance Bill that has also been submitted for approval, there is recommendation to reduce the Companies Income Tax (CIT) rate from 30 percent to 20 percent.

“Over the last few years, from 2015, we had waived all interests and penalties for small scale businesses that did not remit taxes or up-to date with their filing.

Also, we have decided with the Ministry of Finance and government to assist the small scale businesses and I believe that the office of the Vice President did indicate through the President that we’d try to make sure that there is a policy that 40 percent of local expenditure

is given to local businesses which includes the small scale businesses.
Sounding emotive on how taxes, however little could make an impact in the live of Nigerians, Fowler told the committee led by Senator Barau Jubril Mailiya:

“But with this in mind, I would like to bring this to the House. I did find out, some years back that Nigeria has the highest rate of infant mortality and that was due to malaria. And in discussing with the hospitals, it was clear that with N2, 500, a child’s life could be saved.