Covid-19: FIRS Moves To Address Funding Gaps

• Unveils automated system to block leakages

BY COBHAM NSA, ABUJA – The Federal Inland Revenue Service (FIRS) says there is no compromise in its resolve to block leakages in tax collection through automated platforms across the country.

This is part of the Service’s moves to mitigate the effects of unforeseen global challenge on the Nigerian economy amidst the corona virus pandemic currently crippling the world economic systems.

To achieve its set objectives, the FIRS has therefore unveiled a new electronic and automated platform for taxpayers to file transfer pricing declaration and disclosures in Nigeria and block leakages in tax collection, especially the Stamp Duty collected by banks nationwide

According to a statement by the FIRS Director of Communications and Liaison Department, Abdullahi Ismaila Ahmad, the Service is deploying the automated platforms “to ensure 100% compliance” even as it tasked commercial banks to “get fully prepared for the adoption of the new compliance programme as failure to comply is not an option.”

Executive Chairman of FIRS, Mr. Muhammad Nami, who unveiled the electronic solution platform before bank executives and other stakeholders in the tax sector, said; “the need for total compliance and aggressive revenue drive is imperative now in view of the recent crash of oil price from $50 to $29 which will definitely affect our collection from the Petroleum Profit Tax.”

Mr. Nami said: “the outbreak of the Coronavirus has occasioned a global economic meltdown with serious consequences to our economy”, adding that conscious efforts must therefore be made at shoring up revenue to tackle emerging economic challenges in the country.

“You will recall that recently about Fifty Nigerian oil bearing trucks could not discharge crude oil to buyers because of this Coronavirus pandemic. This has the combined effect of reducing government revenue target and, subsequently, the provision of infrastructures and social amenities.

“We earnestly need to shore up against the looming economic meltdown. It is on this note that I solicit your cooperation and understanding in the drive to use automation to rev up our revenue so that the government of President Muhammadu Buhari will be able to deliver on its mandate”, he said.

Meanwhile, the FIRS Executive Chairman has described information circulars as “very important tools for clarifying various provisions of the tax law in line with Section 8(1)(t) of the FIRS (Establishment) Act 2007.”

Speaking at a “One Day Stakeholders’ Engagement for the Review of Draft Information Circulars on the 2019 Finance Act” in Lagos, Mr Nami harped on the importance of undertaking a “joint review of six (6) draft Information Circulars developed by the Service on the implementation of the 2019 Finance Act, to ensure quality of the circulars and proper collaboration for implementation of the Finance Act.”

He told the well-attended technical session with stakeholders from a broad spectrum of the economy that the final circulars envisage robust inputs from the stakeholders.

The FIRS Chairman said the development will “assist in achieving the objectives of the 2019 Finance Act to raise revenues to fund public goods and services; promote fiscal equity; reform domestic tax laws to align them with global best practices; introduce productive tax incentives; support micro, small and medium businesses; and to actualise the Ease-of-Doing Business Reforms.”