Omodele Adigun
To boost the efforts of the Federal Inland Revenue Service (FIRS) in raising non-oil revenue in the country, the Chartered Institute of Taxation of Nigeria (CITN) has called for a handshake between the two institutions, with a view to making taxation the foremost driver of revenue generation.
According to its Registrar/Chief Executive, Mr Adefisayo Awogbade, who made the call in a statement in Lagos, the nation has achieved some substantial progress from the activities of FIRS in recent times, but it is yet to reach its destination as far as taxation is concerned.
Giving reason for this, he said “the job of tax collectors is a tough one as tax payers loathe them. 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.”
The CITN Registrar praised the revenue generating body for the milestones recorded so far.
He added: “CITN, as the only tax professional regulatory body in Nigeria, has keenly observed that since August 2015, the FIRS target for two major non-oil taxes were increased by 52 per cent for Value Added Tax ( VAT) and 45 per cent for Company Income Tax (CIT). This period 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 among others. There has never been a time in the modern history of Nigeria that taxation has become a serious issue for conversation.
“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.
“The Chartered Institute of Taxation of Nigeria notes 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 per cent increase over 2012 – 2014 collection figures. The various initiatives included ICT innovations, taxpayer education, taxpayer enlightenment and evaluation, etc. The FIRS has done credibly well and needs to be commended for these great giant steps by government and all well-meaning Nigerians. The job of tax collectors is a tough one.”
As for oil receipts, Awogbade said 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.
“It is pertinent to note that the fall in price of crude oil and reduction in crude oil production were traceable to vandalisation of pipelines and the effect of the recession on the economy in the second quarter of 2016, which slowed down general economic activities in the country.”