November 28, 2022

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Our mandate to gather taxes, not grant waivers to taxpayers – FIRS


The Government Chairman of the Federal Inland Income Service (FIRS), Muhammad Nami, has disclosed that the mandate of the Service is to gather taxes which might be because of the federation and the federal authorities to not grant tax waivers to any taxpayer within the nation.

Nami said this in a swift response to the information making the rounds that some corporations amongst them Dangote Sinotruck Restricted, Lafarge, Honeywell, and so on had been granted tax waiver on pioneer standing between 2019 and 2021 within the sum of N16 trillion by the FIRS and the opposite companies of the federal authorities. 

In his response, Particular Assistant Media and Communications in a press release Monday quoted Nami as stating that “FIRS doesn’t have the facility or duty of facilitating and even implementing tax waivers to traders in Nigeria. There are related companies of presidency which might be charged with such duty.”

He, nevertheless, famous that the Service is just not unmindful of the aims of granting tax waivers to traders, which he mentioned embody “serving to to develop native corporations, stimulate financial development, and earn traders’ confidence”. 

He additionally said that he’s “assured that the businesses which at the moment are having fun with tax breaks will finally exit shortly and start to pay taxes to the Federal Authorities as is presently being performed by the businesses which have equally loved such tax breaks up to now and at the moment are paying taxes in lots of of billions of naira. Such corporations will proceed to pay taxes to the federal government as long as they continue to be in enterprise.”

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The FIRS Government Chairman additionally clarified that “the businesses having fun with the Pioneer Standing will likely be exempted from paying solely the Direct Taxes (eg CIT, EDT) from their income however will proceed to behave as brokers of gathering and remitting Oblique Taxes (eg VAT, WHT) within the extraordinary course of their operations”.

He concluded the assertion by emphasising that he stays targeted on the duty of attaining the mandate of the Service which is to evaluate, acquire, and account for taxes because of the federation and the Federal Authorities. This activity, he famous, “is difficult, extra so right now of worldwide financial disruption occasioned by the Russia-Ukraine warfare and the Pandemic. Nevertheless, the Administration is steadfast in attaining the goal set for it by the Federal Authorities. As an example, final 12 months the Service surpassed its goal by gathering an unprecedented quantity of N6.4 trillion in taxes. Up to now this 12 months, the Service is poised to carry out even higher than its file for final 12 months.”  

He then referred to as on the stakeholders to affix fingers with the Service to develop the nation’s financial system.