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2016 Tax Collection Slumps To N1.2trillion - Guardian - Politics - Nairaland

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2016 Tax Collection Slumps To N1.2trillion - Guardian by Emekamex(m): 9:05am On Jan 08, 2017
• Records 12-year Low Collection Rate
• Economist Blames Adeosun
• Insiders Claim Unreported Sums May Push It To N3Trillion

Indications have emerged showing that the Federal Government shifted emphasis on taxes back to the traditional resource-base of financing of its yearly budget, because the performance of tax revenue in the out-gone year was very dismal.

At a collection figure of N1.2 trillion as at December 31, 2016, the collection fell grossly below both the government target and the Federal Inland Revenue’s [FIRS self-imposed target of N5 trillion.

Those figures, independently obtained by The Guardian at the weekend represents a 12 – year low revenue collection, dating back to year 2004 when the tax agency raised the sum of N1.194 trillion.

However, a top insider of the tax agency spoke to The Guardian on condition of anonymity, because the collection figure is still being held under wraps by the management.
He confirmed that the actual collection figure that has hit the agency’s tax remittance portal, being held at the Central Bank of Nigeria (CBN), is N1.2trillion, noting that there are still some collections on behalf of the Tax Agency by sister agencies like the Nigerian Customs Service and from the Airlines, which are yet to hit the records.

The official confidently maintained that by the time those collections are reported, the figure may ramp up to over N3 trillion, representing some 75 per cent of the N5trillion, the agency set for itself.

Meanwhile, a closer study of the tax remittance table cited by The Guardian indicates that of the N1.2 trillion collections, the sum of N482.924m has been pocketed as collecting fees.

This is made up of N362.198m and N120.731m, representing 15 percent for the collecting banks and 10 percent for InterSwitch respectively, for collecting the taxes and switching them to the CBN, while the balance has been sent to the CBN.

Further breakdown indicated that non-oil formed the major bulk of the collection, with oil contributing only the sum of N167.013bn.

The annual summary of tax collection from year 2000 to last year indicates that the highest collection was recorded in the tenure of Mrs. Ifueko Omoigui Okauru, with the sum of N5.007tr in year 2012 following hi-tech and revolutionary tax administration reforms introduced then.

That feat was an Olympian jump from a paltry N455.3bn contribution of taxes in year 2000 and after her tenure, the feat is yet to be equaled as collection has been pointing south from N4.805tr in 2013, to N4.714 in 2014 and N3.741 last year; and a likely slump below N2tr this year, if figures reported by the Minister of Budget are anything to go by.

Officials of the Federal Ministry of Finance were not available when The Guardian called yesterday, to provide insight on the development, as calls to their phones could not connect.

However, a senior director at the FIRS on Friday, revealed that the collection is a reflection of the recessionary pressure on the Nigerian Economy.

According to the staff who asked not to be named: “How do you expect greater tax collection in an environment that is almost comatose? Go around, more businesses are shutting down or are either not doing well.

“How can you collect taxes from such businesses. Don’t forget taxes are got from profit. So, if there are no businesses can you still tax such entities?” the staff queried.
When contacted, Head of Corporate Communications of the agency, Mr. Wahab Gbadomosi, said he was out of Abuja and could not speak on the matter.

But, reacting to Nigeria’s failing tax ratio to GDP, a Development Economist, Mr. Odilim Enwegbara, said the development was confirmation that the Minister of Finance was yet to understand the kind of tax policy Nigeria requires to get the country off oil reliance and diversify the economy.

http://www.guardian.ng/news/2016-tax-collection-slumps-to-n1-2trillion/

cc Lalasticlala

1 Like

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by Pavarottii(m): 9:51am On Jan 08, 2017
"The annual summary of tax collection from year 2000 to last year indicates that the highest collection was recorded in the tenure of Mrs. Ifueko Omoigui Okauru, with the sum of N5.007tr in year 2012 following hi-tech and revolutionary tax administration reforms introduced then".

Now compare that to the partry 1.2trillion; even wen they thought they employed a competent fellow TUNDE FOWLER.


"Nigerians will praise me when I step down"-GEJ.

"The truth has 3 stages; Firstly, it will be ridiculed; Secondly, it was vehemently opposed; Thirdly, it will be accepted with self-evidence.

6 Likes 1 Share

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by ScotsReferendum: 10:03am On Jan 08, 2017
Revenue Reduces as Tax Increases

Revenue Increases as Tax decreases

This is a study done by US economists


As tax rates, interest rates, infrastructure cost etc reduces, people and corporations have more money to spend which increase economic activities.

Revenue increases as Economic Activities increases.


Unfortunately, after warning this foolish government not to increase tax , interest and infrastructural costs, they went ahead.

Now they are seeing the result of our warnings.


Buhari lacks wisdom

He refuses to appoint wise people into his cabinet

We have entered into Depression all thanks to this curse called Buhari. angry

3 Likes

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by ivandragon: 10:45am On Jan 08, 2017
people say if GEJ was still president, Nigeria would have still entered recession.

I always differ because even though there were obvious signs of distress in the economy, investors did not panic because they knew that the administration had the capacity to properly manage the situation.

most of the shocks experienced late mid 2014-early 2015 were as a result of the forthcoming elections & the violent negative vibes from the opposition which was promising parallel governments & spilling blood of dogs & baboons.

investors were naturally cautious & toned down their activities with the mindset that after the elections & when normalcy returns, activities will ramp up.

when GEJ lost they were worried, but when they saw he was going to handover peacefully, they were upbeat & this explained the 'bounce' in economic activities in the first 1-2 months of the new regime.

however, rudderless policies, gross incompetence, unguarded comments, delay in setting up a formidable governance team (& a hopeless one when constituted), disregard for the rule of law etc, have since made investors (local & foreign) run for cover.

5 Likes 1 Share

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by basilo102: 11:23am On Jan 08, 2017
What more can i say

2 Likes

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by Noblecx: 11:43am On Jan 08, 2017

But, reacting to Nigeria’s failing tax ratio to GDP, a Development Economist, Mr. Odilim Enwegbara, said the development was confirmation that the Minister of Finance was yet to understand the kind of tax policy Nigeria requires to get the country off oil reliance and diversify the economy.
The cashier woman kemi is obviously clueless and I'm still pondering on reasons why she has not yet been sent back to her village else this country should forget about coming out of recession.

1 Like

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by MadamExcellency: 12:10pm On Jan 08, 2017
ivandragon:
people say if GEJ was still president, Nigeria would have still entered recession.

I always differ because even though there were obvious signs of distress in the economy, investors did not panic because they knew that the administration had the capacity to properly manage the situation.

most of the shocks experienced late mid 2014-early 2015 were as a result of the forthcoming elections & the violent negative vibes from the opposition which was promising parallel governments & spilling blood of dogs & baboons.

investors were naturally cautious & toned down their activities with the mindset that after the elections & when normalcy returns, activities will ramp up.

when GEJ lost they were worried, but when they saw he was going to handover peacefully, they were upbeat & this explained the 'bounce' in economic activities in the first 1-2 months of the new regime.

however, rudderless policies, gross incompetence, unguarded comments, delay in setting up a formidable governance team (& a hopeless one when constituted), disregard for the rule of law etc, have since made investors (local & foreign) run for cover.

You captured my thought before I could type it.

Did you steal this this from me?

grin grin grin

3 Likes

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by MadamExcellency: 12:10pm On Jan 08, 2017
Pavarottii:
"The annual summary of tax collection from year 2000 to last year indicates that the highest collection was recorded in the tenure of Mrs. Ifueko Omoigui Okauru, with the sum of N5.007tr in year 2012 following hi-tech and revolutionary tax administration reforms introduced then".

Now compare that to the partry 1.2trillion; even wen they thought they employed a competent fellow TUNDE FOWLER.


"Nigerians will praise me when I step down"-GEJ.

"The truth has 3 stages; Firstly, it will be ridiculed; Secondly, it was vehemently opposed; Thirdly, it will be accepted with self-evidence.
Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by DropShot: 12:14pm On Jan 08, 2017
However, a top insider of the tax agency spoke to The Guardian on condition of anonymity, because the collection figure is still being held under wraps by the management.
He confirmed that the actual collection figure that has hit the agency’s tax remittance portal, being held at the Central Bank of Nigeria (CBN), is N1.2trillion, noting that there are still some collections on behalf of the Tax Agency by sister agencies like the Nigerian Customs Service and from the Airlines, which are yet to hit the records.

The official confidently maintained that by the time those collections are reported, the figure may ramp up to over N3 trillion, representing some 75 per cent of the N5trillion, the agency set for itself.

It's impossible to know what exactly Nigerian earned from taxes in 2016 by the first week of January 2017.

This report is not worth the paper on which it was made.
Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by ivandragon: 12:51pm On Jan 08, 2017
MadamExcellency:


You captured my thought before I could type it.

Did you steal this this from me?

grin grin grin

please o! the 'plagarisers' are in the other room.

however, it is easy for those who desire to expand their knowledge to conduct research.

at the end of the day, the figure will probably be higher,... max, an extra N1tr will be added which is still a far cry from what obtained in the recent past.

by 2018, things will improve, not because this regime will get it right, but the exigencies of the 2019 elections will force them to employ cosmetic measures for the few months to the election.

& that 'improvement' will only be relative to their own past (present) failings... for instance, the price of PMS will hit N200-N250 soon, but by late 2018, they will reduce it to N160-N170 then tell Nigerians how they have 'brought down the price of PMS'...

2 Likes 1 Share

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by kcnwaigbo: 12:59pm On Jan 08, 2017
I thought the said the Tinubu lackey was a magician? WTF is this?

1 Like

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by MadamExcellency: 1:10pm On Jan 08, 2017
ivandragon:


please o! the 'plagarisers' are in the other room.

however, it is easy for those who desire to expand their knowledge to conduct research.

at the end of the day, the figure will probably be higher,... max, an extra N1tr will be added which is still a far cry from what obtained in the recent past.

by 2018, things will improve, not because this regime will get it right, but the exigencies of the 2019 elections will force them to employ cosmetic measures for the few months to the election.

& that 'improvement' will only be relative to their own past (present) failings... for instance, the price of PMS will hit N200-N250 soon, but by late 2018, they will reduce it to N160-N170 then tell Nigerians how they have 'brought down the price of PMS'...




I must add, the temptation to defile present realities and scourging inflation to print more Naira to be distributed to States inorder to obset Salary and pension deficits including payment of ravaging domestic debt (that is projected to reach N50 trillion in 2018) will be irresistible.

The value of Naira and Nigerians will be the victims of this administration's careless actions and inactions.

I pray Buhari's government gets it right before 2018 when the people will be left without any sense of direction by destabilisation from the opposition and re-election politickings.

3 Likes

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by amAZEing: 1:21pm On Jan 08, 2017
It is like a simple maths...

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by MadamExcellency: 1:30pm On Jan 08, 2017
DropShot:


It's impossible to know what exactly Nigerian earned from taxes in 2016 by the first week of January 2017.

This report is not worth the paper on which it was made.

But it is possible to project total income tax from employees of NNPC by December 2016

Btw, the one trillion mentioned is not an integer but a real number.

1 Like

Re: 2016 Tax Collection Slumps To N1.2trillion - Guardian by Noblecx: 1:30pm On Jan 08, 2017
amAZEing:
It is like a simple maths...
Jimmy gave no bleeps on that day

1 Like

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