FIRS envisages funding budget with non-oil sector revenue
FIRS envisages funding future budget with non-oil sector revenue
By Kayode Ogunwale
Federal Inland Revenue Service (FIRS) has affirmed government effort to move away from funding national budget with revenue from oil sector.
Nigeria economy is suffering because of over depending on oil and gas revenue to fund governmental projects and other activities.
The Chairman, Joint Tax Board (JTB) and Executive Chairman FIRS, Mr. Tunde Fowler while speaking in Abeokuta, Ogun State, when he led 36 state Chairmen of the State Boards of Internal Revenue to the governors office in Abeokuta said, 70 per cent of N559.032 billion raised for the Federal Accounts Allocation Committee (FAAC), in June came from non-oil sector.
According to Fowler, “We are proud of the development and we tell ourselves that this is the time to fund the budget of the Federal Government from non-oil sources”, Fowler said.
“Of the sum, 70 per cent came from non-oil sources while only 30 per cent came from oil sources. It was the first time in 2016 that the Federal Government shared over N500bn among the three tiers of government during the Federal Accounts and Allocation Committee (FAAC) meeting”.
Fowler noted that FIRS tax revenue collection is seasonal, but a combination of massive new taxpayer registration drive, tax education and engagement through the establishment of the Federal Engagement and Enlightenment Tax Teams (FEETT), audit of five key sectors: banks and the financial sector, aviation, power, telecoms and oil and gas is beginning to yield result. He said that FIRS has also added over 700,000 new corporate accounts in since he assumed office.
He said has a cumulative figure of 10 million registered taxpayers if you add the number of taxpayers of States Boards of Internal Revenue and the FIRS. JTB, Mr. Fowler said has given itself a target to register at least 10 million additional taxpayers by December 31st 2016.
“We have commenced tax enforcement too. We are happy that the efforts of the FIRS in collaboration with revenue stakeholders are already yielding positive result.
The FIRS Chairman said the FIRS and the SBIR identified collaboration to register more taxpayers, across states, data sharing, exchange of information, joint audits to improve efficiency and tax yields from audits, capacity building through joint training programmes and exchange of personnel.
The governor of Ogun State, Senator Ibikunle Amosun, who declared the meeting open urged the FIRS chair to improve his tactics of generating revenue for the government.
According to him, “Whatever you, Customs and others did last month that ensured that we (Federal, States, shared over N500 billon at the Federal Accounts Allocation Committee, please continue to do it. It is good for the Federal government. It is good for states. It is good for Local Governments. It is good for the nation.”
Governor Amosun said the ability of the Federal government to collect more than N500 billion last month shows that Nigeria can generate more if everyone is determined to explore other sources of revenue apart from oil.
“It has come to a point we should say, okay, let us leave oil aside. Let us face non-oil sources. This is the first time in the recent times, the Federal government shared the excess of N500 billion and 70 per cent of that sum came from non-oil sources. That means that we can do more if we are determined. All hands must be on deck to grow our tax revenue. We must find a way of bringing the rich people into the tax net.”
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