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How FIRS Plans To Realise Its Revenue Target -Fowler

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The Federal Inland Revenue Service (FIRS) says it plans to realize its revenue target for the year through recoveries from defaulting millionaire taxpayers, values added (VAT) and compliance enforcement activities.

The Chairman of FIRS, Tunde Fowler, said in January that the agency’s revenue collection target for 2019 was about N8 trillion.

Mr Fowler told the House of Representatives joint committees on Finance, Appropriations, Aids, Loans and Debt Management Legislative Budget and Research and National Planning and Economic Development that he hopes about N750bn would be realized from about 55,000 defaulting taxpayers during the year.

Mr Fowler, who spoke on the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), said using banking information to bring non-compliant taxpayers with N1 billion and above turnover to comply about N23.25 billion has been recovered so far.

He also restated that 85% of VAT collected goes to State Governments. He said the exercise has been extended to cover those with turnover of N100 million and above.

“To date, about 500 of the tax defaulters have come forward and have paid about N24 billion. We believe we should be able to go through the 55,000 before the middle of this year.
“In terms of estimates we should be able to be able to generate from this exercise alone about N750 billion.”

Besides, Mr Fowler said the FIRS also expects that the increase in Value Added Tax (VAT) collection between 2015 and 2018 will continue during the year.

He said FIRS is already broadening its VAT collection scope with the adoption of States Accountants Generals (SAG) collection platform, VAT Auto-Collect, integration of the GIFMIS platform with Ministries, Departments and Agencies, (MDAs) and through e-Service payment options.

Out of about N5.3 trillion, a large percentage of the revenue is shared between states and local governments.’ In VAT, there has been a growth of over 44 per cent between 2015 and 2018 at the current rate of 5 percent.

“When you look at Africa as a continent, Nigeria still has the lowest VAT rate. When we look at the items that do not attract VAT, they include basic food items, medicals, and education.
Insisting VAT is not for the poor, Mr Fowler said if one is able to go to a restaurant to eat and drink the same thing one can buy in the open market, then one can pay VAT.

“So, VAT basically is a consumption tax, and those who choose not to go to the open market to buy their food and cook at home are subject to VAT. So, VAT is not a hardship on the low income earners.

“For those who have the ability and the desire to take the choice of going to areas where they have to pay VAT, then they should be allowed to pay VAT,” he added. He said revenue collection by FIRS increased by about 32 per cent from N4.02 trillion in 2017 to N5.3 trillion in 2018.
The FIRS Chairman told the committee that through enforcement activities in respect of defaulting taxpayers from various tax offices, tax audit and investigation assessments, the agency recovered about N28. 51 billion and $77. 83 million.

Also, the FIRS is partnering with the Economic and Financial Crimes Commission (EFCC) and Joint Tax Force (JTF) since 2018 to enhance the fight against tax related economic fraud. As at December 2018, he said about N6. 94 billion and $278,430 had been recovered by the JTF as part of initiatives to boost revenue generation.
To deepen tax revenue collection and expand the nation’s tax net as well as increase the revenue base, Mr Fowler said the FIRS also initiated income tax on property owners in Abuja and Lagos.

He said the initiative, which was initially targeted at property owners in Abuja and Lagos, has so far yielded N4.3 billion, and is being extended to other locations like Oyo and Kaduna states.
“It is important to note that this is not a property tax, but rather the use of the provisions of the law to bring into the tax net companies that own properties but failed to file necessary tax returns and pay appropriate taxes due,” Mr Fowler said.

On tax audit exercise of the Service, the FIRS boss said this will cover both the National Tax Audit (NTA) and the Pioneer Audit (PA). The NTA exercise contributed the sum of N212.79 billion to tax collection in 2018.

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Osun Election: IGP Disu Assures Voters of Police Neutrality, Professionalism

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The Inspector-General of Police, Tunji Disu, has assured residents of Osun State and other Nigerians that the Nigeria Police Force will remain professional, apolitical and impartial throughout the August 15 governorship election.

Disu gave the assurance on Friday in Abuja while meeting with a delegation of civil society organisations led by Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC). The meeting focused on security preparations and concerns surrounding the forthcoming poll.

The police chief acknowledged concerns over possible electoral violence, voter intimidation, political thuggery and the perceived neutrality of security agencies. He said the concerns were legitimate and required transparency and concrete measures from law enforcement authorities.

Disu said the police had already put comprehensive security arrangements in place for the election and stressed that the force has no preferred candidate or political party. He maintained that its primary responsibility is to ensure that voters are able to freely exercise their constitutional rights.

He further disclosed that officers assigned to election duties had been reminded of their constitutional obligations to enforce the law fairly and without favour. Adequate personnel and operational resources have also been deployed across the state, while intelligence gathering and threat assessments have been intensified ahead of the poll.

The IGP warned that anyone involved in vote buying, voter intimidation, ballot box snatching, political thuggery or other electoral offences would face legal consequences, irrespective of their political affiliation or status.

Disu also appealed to political parties, candidates and their supporters to avoid violence and conduct their campaigns responsibly. He urged Osun residents to participate peacefully and report suspicious activities to security personnel.

Speaking earlier, Rafsanjani said civil society organisations would continue working with security agencies to support a free, fair and credible election. Yiaga Africa Executive Director Samson Itodo described the Osun election as an important test for Nigeria’s electoral process ahead of the 2027 general elections.

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BREAKING: Tinubu Directs EFCC To Vacate Order Freezing Osun Government Account

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President Bola Tinubu has reportedly directed the Economic and Financial Crimes Commission (EFCC) to withdraw its directive restricting access to Osun State Government’s account, following the controversy surrounding the account freeze.

The development comes after the EFCC placed a Post-No-Debit (PND) restriction on an Osun State Government statutory allocation account domiciled with First Bank, preventing withdrawals from the account as part of an ongoing investigation.

The action sparked a political uproar after Osun State Governor, Ademola Adeleke, accused the anti-graft agency of attempting to cripple government operations ahead of the state’s governorship election. The governor argued that freezing a state government account lacked legal justification and could affect the payment of salaries and other government obligations.

Sources familiar with the matter said President Tinubu’s intervention was aimed at resolving the dispute and preventing further escalation between the federal agency and the Osun State Government. The EFCC had earlier maintained that the restriction was connected to an ongoing investigation and that several government officials had been invited in connection with the probe.

The account restriction had heightened political tension in Osun, coming shortly before the state’s governorship election, with opposition figures and observers questioning the timing of the action.

As of the time of this report, further details on the formal communication between the Presidency and the EFCC, including whether the restriction has been officially lifted, are still awaited.

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Police Arrest Suspected Human Trafficker, Rescue 25-Year-Old Woman

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The Nigeria Police Force has arrested a suspected human trafficker and rescued a 25-year-old woman during an operation targeting human trafficking and other organised crimes. The operation forms part of ongoing efforts by law enforcement agencies to dismantle trafficking networks and protect vulnerable persons.

According to police authorities, the suspect was apprehended following credible intelligence, while the victim was successfully rescued before she could be moved to an undisclosed destination. Preliminary investigations indicate that the woman may have been deceived with false promises before falling into the suspect’s custody.

Police said the rescued woman is receiving the necessary care and support while investigators work to uncover the full extent of the trafficking operation and identify other individuals who may be connected to the syndicate. The suspect remains in custody as investigations continue.

The command reiterated its commitment to combating human trafficking and urged members of the public to report suspicious activities involving the recruitment, movement or exploitation of individuals. It also encouraged citizens to remain vigilant and verify employment or travel offers before accepting them.

Authorities assured that anyone found involved in human trafficking or related offences would face prosecution in accordance with the law as efforts continue to curb the crime across the country.

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