Saraki: Efficient Tax collection will make up for shortfall in oil Revenue
Senate President Dr. Abubakar Bukola Saraki, today advocated for greater focus on tax collection to boost the nation's revenue in view of the dwindling revenue from oil.
He added that an efficient tax collection system in the country is sine qua non to much needed economic revival at this time.
Saraki who spoke in Abuja after receiving a brief from the management of the Federal Inland Revenue Service (FIRS) led by its Acting Chairman, Mr. Sunday Samuel Odugbesan, said an effective tax regime will not only help revive the economy but will help the government to fund its various development programmes and redistribute wealth among the various strata of the society.
Saraki said it was time to evolve a broad based system of tax administration which will be a more stable and reliable source of revenue as it does not depend on any external factor to achieve.
He added that the FIRS should come up with proposed laws and recommendations that can help to boost their operation in the area of adequate and efficient tax collection.
Saraki said: "The FIRS is one of the agencies that have requested to interact with the Senate and to show the importance that the 8th Senate places on performance, we decided to meet you as quickly as possible because we know that our country's dependence on oil as a large source of revenue is very fragile and it cannot be a way forward for a country like us.
"You have seen it even by your own presentation. The way forward for our country is really to look at the area of our taxes, because it is more stable, reliable and not dependent on other issues outside the country.
"As you know today, tax is only about six per cent of our Gross Domestic Product, GDP, which is scored low compared to other countries that are doing about 20 per cent. So, there is a lot of work for us to do. I think the success of our revenue going forward will depend on you as the Chairman and your team and that is the blunt truth.
"If we are going to be depending on the fluctuating fortune from oil, then, we are not planning for the future but we need to plan first on the non-oil revenue sector. I am happy you (FIRS boss) are a new person coming in, you have an opportunity to think out of the box, be creative and turn around things in the FIRS.
"I hope that we will be able to partner together. We must ensure that everybody begins to pay the right taxes due. When we talk about fighting corruption, it should start by ensuring that everybody pay the taxes that are due, everyone of us must be ready to do that. I know it is not going to be very easy but you can count on our support to make it happen", Saraki said.
The Senate President said the National Assembly would henceforth carry out stringent oversight on the tax agency aside from partnering with them with the FIRS to deliver on increased revenue.
He said: "For us in the 8th Senate, this is an agency we want to work very closely with and we want to be very stringent on our oversights because honestly if we do not get it right in the area of taxation, I don’t believe we are going to get it right going forward.
"If you look at all the challenges before us, if the price of oil is good, we can execute our development policies and programmes but the fluctuation in the prices does not allow us to plan. Our non-oil revenue has to be stable enough to be able to address those issues and I think that is the area we need to work", he said.
The Senate President added that it was time for the agency to address the concerns being raised by some states about lack of incentives in collecting the Value Added Tax (VAT).
He added that some new taxes that were introduced to shore up revenue towards the tail end of the last administration have not yielded required dividends.
He said: "I am happy you talked about some of these surcharges. You know those charges are just sensational issues, they are not sincere and we should stop deceiving Nigerians because they are not the issue.
"The issue to us today is how can we expand the net, how can we ensure that everybody is paying taxes and not saying that you are imposing charges that will just make headlines. That is not going to take us anywhere. Let us address how do you for example improve on company income taxes. You see a lot of companies today, when you look at their foreign exchange demand, some of them are bidding for $200 to $300 billion, yet they say they are making zero profit", he said.
Saraki directed the FIRS management to send a proposal to the Senate on areas where they need legislative support to strengthen their operations and make them more effective and efficient in revenue collection and enforcement of relevant laws.
Earlier in his remarks, the FIRS boss, Mr. Odugbesan, congratulated Saraki on his election and emergence as the Senate President.
He noted that the price of oil which is the nation's main income earner has been on the downward slide.
He said: "Oil and gas which is key to the economy has not been doing too well and this is as a result of many factors many of which are completely out of our control. The price of oil in the international market we all know has continued on the downward slide. Although in the last three months, it started gathering some momentum. As at today, I think it is average $59 and $62 but the average we have computed is about $59 and that is what obtainable today."
According to him, what is within the purview of the agency is to intervene to shore up the collection from non-oil sector.
He added: "As at the end of June, we have not actually got the total figures for June yet, it is just ended yesterday and JP Morgan that is assisting the Federal Government to collect foreign components of our collection will still be giving us a report even a week after the closure of the month.
"But so far we will say that Petroleum Profit Tax have given us N697.07bn for the first six months, that could go up a little bit.
"For the non-oil component, you have conflicting contracts which has brought in N778billion between January and June and Valued Added Tax N376billion", Odugbesan said.
Signed:
Yusuph Olaniyonu
Special Adviser (Media) to the Senate President

T

So u bastard kalokalos can plunder that bit too as u hav d oil windfall bah? May Lucifer punish y'all lavishly!

PUNK. DAMN thieving judas person

Okay