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States IGR leap to N1.16 trillion as 10 million join tax database – Fowler

The Chairman, Joint Tax Board,  JTB and Executive Chairman,  Federal
Inland Revenue Service (FIRS) Tunde Fowler has said 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  some  46.11 per cent  under four years.

Also Nigeria’s tax database has increased from 10 million to 20 million, with a target of 45 million taxpayers nationwide by December 2016.

Fowler spoke in Ilorin today, Thursday at the North Regional launching of the
New Taxpayer Identification Number (TIN) Registration System and
consolidated national tax database programme.

Fowler noted that the new system also provides immense benefits to the
taxpayers. “The consolidated database apart from providing a unique
identity to the taxpayer also facilitates ease of compliance. It
limits the incidence of double taxation and is a prerequisite for a
number of transactions such as sale and purchase of immoveable
property, registration of vehicles, applications for plot of land,
import and export licence, registration as a contractor, entry visas
among others. Ultimately, the system promotes the ease of doing
business for both individuals and corporate bodies.

Fowler listed the achievements of the JTB his tenure to include the following:

# 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;

# 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. 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.

Fowler commended the strides of the Kwara IRS under Dr Murtala Awodun.

Said Fowler:  “The choice of Kwara State as the host for the
North-Central Regional flag-off event is strategic as it is in
recognition of the path-finding role it has played in the quest
towards ensuring sustainable internally generated revenue profile for
the State as well as for the region.

“Over the years, the Kwara State Internal Revenue Service (KWIRS) has
designed and executed far reaching IGR reforms that have seen it
establish itself as a model Revenue Agency in the region. Following
the signing of the Law granting it autonomy in June 2015, it has
developed in leaps and bounds constantly seeking to achieve excellence
in tax administration.

“Having achieved a 221% increase in its collection, from N7.1 billion
in 2015 at the time of attaining its autonomous status, to N23 billion
in 2018, Kwara State IRS has come to be a benchmark for revenue
authorities, not just within the North Central region, but nationwide
as well. It is also worthy of note that KWIRS is also the only State
Revenue Agency in the country to have been ISO certified, with the ISO
9001 for Quality Management System and ISO/IEC 22301 for Business
Continuity Management System.

“While Kwara State IRS continue to set standards, sister Revenue
Authorities within the zone are not left behind as statistics indicate
that Niger State with 60.05% and Nasarawa State with 22.56% are among
the top fifteen States with an annual growth rate above 20% in 2018.
This is coupled with the fact that the FCT IRS, in its first full year
of autonomous operations is comfortably placed as the fourth highest
sub-national revenue generating agency in 2018, behind Lagos, Rivers
and Ogun States.

Fowler noted that the JTB under him is not doing badly at the level of
promoting the nation’s business and financial health: Said the FIRS
Chairman: Äs the process of securing the relevant data from the
Central Bank of Nigeria (CBN) via the Nigeria Inter-Bank Settlement
System (NIBBS), and the National Identity Management Commission (NIMC)
as directed by the President are ongoing, we believe that today’s
ceremony will further reinforce the need for us to work together as
one towards ensuring a more friendly tax environment in the country,
while promoting the various  socio-economic initiatives of Mr.
President such as the Strategic Revenue Growth Initiative, Ease of
Doing Business and the Economic and Recovery Growth Plan.

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.
“Over the last four years, the economic policies of the current
administration has focused on establishing a stable foundation for
further socio-economic growth and development, and with the astute
leadership of Mr. President, the milestones achieved bears ample
testimony on the impact that has been made, not only in tax-revenue
administration, but in the environment of doing business in Nigeria,” he said.

Governor of Kwara State, Mallam AbdulRahman AbdulRasak who was
represented by the State’s Deputy Governor, Kayode Alabi also lauded
the TIN initiative, saying that the payment of tax is change that
everyone must embrace.

“Tax payment is integral to the growth and development of every
economy and it must be embraced by every human who wants to see the
change we all desire. We are very optimistic that this launch of TIN
Registration System and consolidated National Database will indeed
increase the coverage of taxpayers and simplify tax processes in the
North-Central Geopolitical Region”, he said

When the new TIN tax database was launched by the Vice President in
Abuja by Professor Yemi Osinbajo, two months ago, he noted  that
tax-revenue administration in the 21st century has evolved into “a
systematic and deliberate process that is underpinned by the
availability of accurate and reliable data. It entails deliberate and
strategic planning initiatives, well informed and adequately equipped
tax-revenue managers who drive the process both on and off the field.

About Mikail Mumuni