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FG revenue from tax is only 25 per cent, says FIRS boss

Posted by By CHRIS ANUCHA on 2005/08/17 | Views: 354 |

FG revenue from tax is only 25 per cent, says FIRS boss


Tax accounts for only about 25 per cent of total revenue of the Federal Government, Executive Chairman, Federal Inland Revenue Service (FIRS) Ms Ifueko Omoigui has said.

Tax accounts for only about 25 per cent of total revenue of the Federal Government, Executive Chairman, Federal Inland Revenue Service (FIRS) Ms Ifueko Omoigui has said.
She also says FIRS collected over N2 trillion between 2004 and July 2005 as revenue.

The chairman spoke on Monday in Abuja during an interactive session with National Assembly correspondents to acquaint them with current tax reforms and eight tax bills recently submitted to the National Assembly.

``In most economies, tax is the major source of income for development, which also drives increased stake by the citizens in nation-building,'' she said.
She said that tax reforms had become necessary partly because of the wide gap between national and state development needs and funding, as well as over-dependence on oil revenue.

According to Omoigui, on the average, over 90 per cent of the revenue of states is derived from the Federal Government, with Lagos State being the exception at about 45 per cent.
She described the country's tax administration in the past as ``weak and incapacitated'' with a high level of systemic corruption, tax evasion and tax avoidance.
She said the reform process, which commenced in 2002, had been exposed to the public and stakeholders.

``The Federal Government continues to obtain inputs on how to improve the tax system, which would still affect the shape of the bills currently with the National Assembly,'' the executive chairman said.
Omoigui announced that a national tax retreat was planned for Lagos later this month for stakeholders, saying a communique from the retreat will drive other inputs into the tax bills pending in the National Assembly.

Omoigui gave the breakdown of the amount collectable in 2004 as N1.2 trillion with N878 billion collected from about 20 oil producing companies.
She said that the service's N1.2 trillion revenue projection for this year was based on international oil market price.

The chairman revealed that between January 2005 and July 2005, a total of N865.6 billion was collected as taxes by the FIRS.
Of the amount, she said N662 billion was from petrol profit tax while N86.4 billion was from company income tax.
According to her, N107.8 billion was collected as Value Added Tax (VAT) in the first seven months of this year.

Omoigui, who is also the chairman of Joint Tax Board (JTB) expressed optimism that the FIRS would exceed its revenue projection for this year.
She opined that the service would do better if effective machinery were put in place through the on-going tax reforms.
The chairman added that the reforms were necessary to keep media men informed of the efforts being made to operate and sustain a viable tax system in the country.
Omoigui said that the organisation would hold a retreat for all stakeholders to sensitise them on tax reforms between August 22 and 24, in Lagos.

One night, he said devil sold the idea to him to call the Professor to tell him that his missing son was in his custody, and that he needed to pay a ransom for his release.
"I now manipulated my voice so that he won’t know I was the one calling. I also hid my number in the handset and called him to say I was the one that kidnapped his son."

Williams, who blamed the devil for his action appealed to the police to set him free, adding that his four children had fallen sick since his arrest and his pregnant wife about to put to bed.
The second suspect, Agbor said Williams was his friend and that he met him that morning on his way to Ikeja.

Agbor explained that Williams did not disclose how he got the money he was asked to accompany him to withdraw from the bank.
But the police said he has a case to answer, adding that he was monitoring the situation while Williams went into the bank to withdraw the money.
Detectives from Port Harcourt are carrying out further investigations into the matter.

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