FIRS laments revenue loss, blames MDAs’ negligence

The Federal Inland Revenue Service (FIRS), blames significant loss of revenue to the federation account on improper remittance of withholding tax, Value Added Tax (VAT) and stamp duty by Ministries, Departments and agencies (MDAs).

Executive Chairman of FIRS, Zacch Adedeji stated this at the FIRS–OAGF stakeholders’ engagement, with the theme: “Enhancing Tax Compliance through Collaboration”; he urged government institutions to lead by example in tax collection and administration.

“Despite the technological advances we’ve made, particularly with GIFMIS and our own TaxPro MAX platform, we continue to observe lapses in withholding tax deductions, VAT remittances, and stamp duty administration from the MDA space.

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“These gaps, many of which are due to technical limitations and a knowledge deficit on tax compliance requirements, result in significant revenue losses and recurrent audit issues.

“When government institutions are tax-compliant, the message it sends to the private sector and to citizens is powerful: that no one is above the law, and that transparency begins at home.

“Our credibility as public institutions are tested first by our own adherence to tax regulations.

“If we must grow revenue to meet our national development priorities, then we must begin by ensuring that public sector actors play by the rules—and help others do the same,” Adedeji stated.

He sought the creation of awareness to boost tax collection, adding that increased collaboration with revenue generating agencies is the way to go.

The Accountant-General of the Federation (AGF), Babatunde Ogunjimi, in his opening remarks, insisted that improving tax compliance among Nigerians is now a national priority.

Ogunjimi said there is a pressing need to optimize tax collection which he admitted can only come when MDAs collaborate.  

NIGERIAN TRIBUNE