e-VAT Shores-up FIRS’ Revenue Profile

…Rakes in N2.4bn from 3 airlines
BY COBHAM NSA, ABUJA – The Federal Inland Revenue Service (FIRS) says the newly introduced automated Value Added Tax (VAT) payment platform will boost its revenue collection profile.

According to the Service, with a projected N10 billion yearly VAT receipts from domestic airlines alone, the platform, tagged ‘VAT Collect’ will not only improve tax collection but also reduce bureaucratic logjams and leakages in the system.

Director, Information Communications Technology (ICT), FIRS, Mr Kola Okolona said Nigerians are assured of a robust VAT automation mechanism that blocks leakages and drives accountability and transparency of tax remittances within the industry.

Addressing participants at the FIRS sponsored media training programme, organised by Journalism.com Limited, Mr Okolona said with only three domestic airlines on the e-VAT platform since its inception 2014, the Service has already raked in over 2.4 billion Naira in tax revenue.

The ICT Director stated that, “The deployment of ICT solution will assist revenue agencies to effectively and efficiently discharge their mandate in terms of identification and registration of tax payers, returns and payment processing, audit, accounting and other tax administration functions.”

“Arik Air, Air Peace, Azman and others are not yet on this electronic platform. Arik Airline controls up to 70 per cent of the market share. So, by the time Arik and others come on stream, we hope rake up to N10 billion annually from VAT from domestic airlines”, he said

The Director said FIRS is currently undertaking VAT automation for sectors such as power, financial services, hospitality, insurance, telecommunications, oil & gas, major malls and e-commerce among others.

Okolona also said that FIRS’ engagement with Office of the Accountant General of the Federation (OAGF) on the Government Integrated Financial Management System (GIFMIS) has so far captured 105 Ministries, Departments and Agency (MDAs) on its list, adding, “All Contractors working for any of the 105 MDAs must update their bank account details with FIRS, the updated bank accounts in addition with the tax identification number (TIN) are automatically pushed to GIFMIS database for payment purposes.”

In Okolona’s words, “GIFMIS will only process contractors payments using the account details pushed from FIRS Tax portal. Whenever contractors are paid in any of the 105 MDAs, the VAT and WHT (Withholding Tax) will be automatically deducted and remitted to FIRS Account at CBN, simultaneously as the vendor is being paid.”

Similarly, he said individuals and organisations can now register businesses without any physical contact with FIRS’ officials, adding, “|It is part of government’s ease of doing business package. We want to do away with physical human contact because that is where bribery comes in. We want this to stop.”