The Executive Chairman of Federal Inland Revenue Service (FIRS), Mr Tunde Fowler has disclosed that the states have recorded a leap in their Internally Generated Revenue (IGR) from N800 billion in in 2016 to N1.16 trillion in 2018, representing 46.11% in four years.
This is even as hinted on Thursday that the nation’s tax database had increased from 10 million to 20 million during the period, with government projecting that at least 45 million taxpayers would have been captured in the database nationwide by December, 2026.
The tax administrator and Chairman of the Joint Tax Board (JTB), gave these hints in his speech at the North Regional launch of the New Taxpayer Identification Number (TIN) Registration System and Consolidated National Tax Database programme, adding that the technology-driven new system also provides great benefits to the taxpayers.
A statement from the FIRS Office in Abuja, quoted the FIRS’ boss as saying that the consolidated database apart from providing a unique identity to the taxpayer also facilitates ease of compliance, limits the incidence of double taxation and is a prerequisite for a number of transactions such as sale and purchase of immovable property, registration of vehicles, applications for plot of land, import and export licence, registration as a contractor, entry visas among others.
Fowler pointed out that ultimately, the system remained a fiscal tool for promoting the ease of doing business for both individuals and corporate bodies”.
He listed the achievements of the JTB so far to include, the expansion of the tax base from 10 million to 20 million taxpayers with the potential for an increase of up to 45 million before the end of the third quarter of 2019; a growth in the IGR of states by over 46.11% from N800.02 billion in 2016 to N1.16 trillion in 2018; a growth of FIRS collections by 53.81% from N3.30 trillion in 2016 to N5.32 trillion in 2018; with the 2018 total collection of N5.32 trillion being the highest collection ever in the history of the FIRS, while non-oil revenue, with a collection of N2.85 trillion accounted for 53.63% of total revenue collection;
Others are, payment by the Federal Government of the total sum of N135.8 billion representing all outstanding PAYE tax liabilities owed by federal MDAs to states from 2002 to 2016; with a total of N31.08 billion paid to the states in the North-Central Geopolitical Zone.
He clarified: “We are confident that this gesture by the Federal Government will encourage State Governments to also reciprocate and promptly remit all Withholding Taxes and VAT due to the Federation Account; a positive movement during the same period by Nigeria up 25 points in the Tax Administration Section of World Bank ‘Ease of Doing Business’.
“This positive progression is also reinforced by the recent listing of Nigeria as one of the ‘top 20 improvers in Doing Business for the year 2020’ by the World Bank. We expect that more positive country reports will be released by the time the full report by the World Bank is released in October 24th, 2019.
“The TIN Registration Go-Live event which has brought together all Tax Authorities with a common vision and goal, is poised to change the financial profile of Nigeria and particularly, lay a strong financial foundation to fund government at all tiers beyond aid, grants and borrowing”, he said.
“The New TIN Registration System is geared towards reinforcing the laudable efforts of this administration towards building a robust tax-revenue administration system for the country and it aims to improve the ease of tax compliance while ensuring a sustainable and inclusive economy for all Nigerians”, Fowler added.