Yesterday, we had our Tax Breakfast Seminar which focused on the budget and the Finance Act. In attendance was the Executive Chairman of the FIRS. I will share with you in few tweets some of the insights provided by the FIRS Chairman.
It's a thread !
The FIRS will deploy more of it's workforce to tax audit. Currently only 16% of the FIRS headcount handle tax audits. This will be scaled up to 30% of the headcount.
The FIRS is collaborating with tax authorities at the state level and there is going to be increase in the level of information sharing among the tax authorities.
Hello friends! Let’s talk about VAT in Nigeria and some perspectives on the proposed hike to the VAT rate.
It’s a thread! #NigeriaVAT
1. We are all aware of the plan by the FG to increase VAT rate from the current 5% to 7.5% come 2020. While several “experts” and public affairs commentators have complained about how low our VAT rate is compared to other countries in Africa...
2. ...they have failed to appreciate the deficiencies of the Nigerian VAT system.
There are reasons why it may be wrong to compare VAT in Nigeria with that of other countries. Our VAT is not a proper VAT. It is more of a sales tax than VAT. #NigeriaVAT