Federal Inland Revenue Service (FIRS), has given power sector operators June 30 deadline for the remittance of Value Added Tax (VAT) revenue into the Federal Government’s coffers.
At a joint workshop for stakeholders in the power sector, both FIRS and the National Electricity Regulatory Commission (NERC)  agreed that while discussions are ongoing between stakeholders, outstanding Value Added Taxes (VAT) deducted be remitted to the FIRS on or before June 30, 2014.
Part of the ongoing discussions are that capital items would be defined according to the standards of the International Financial Reporting Standards (IFRS).
Also gas purchases would need to be treated under some form of special dispensation such as input VAT suffered by GENCos (Generating Companies) would be considered under this dispensation.
Earlier, Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, told participants at the workshop that VAT, provided an instant opportunity to measure progress for the ongoing transformation in the power sector.
Okonjo-Iweala, represented by the Permanent Secretary in the Ministry, Mrs. Anastasia Daniel-Nwaobia, noted that the workshop will ensure there is a synergy between the two sectors in a manner that enables FIRS plug into existing platforms in the industry with a view to building  or deploying effecting technology base system that will enhance tax compliance and overall transactional efficiency in the sector.
In his remarks,  the Acting Executive Chairman of FIRS, Kabir Mashi, noted that the collaborative efforts was part of the Service’s resolve to focus more on the need to grow non-oil revenue in order to meet the developmental needs of the country.
In a statement,  Head, Communications and Liaison Department of FIRS, Mr Wahab Gbadamosi, said that
FIRS had earlier embarked on  similar initiatives in the Aviation Industry, Banking Sector, Government`s Ministries, Departments and Agencies (MDAs), States through the Joint Tax Board (JTB) and the Local Government.
Also, Mashi said there were ongoing arrangements with the Office of the Accountant General of the Federation (OAGF) through the GIFMIS platform and e-tax pay to source-deduct VAT from MDAs and remit to the appropriate account.
The Acting  FIRS Chairman spoke about FIRS’ latest IT collection platforms (the VAT Collect, the E-Tax Pay, and the Tax Calculator etc) and draw on specifics in the VAT Code with respect to the power and energy sector.
Speaking,  the Chief of Staff, to the Minister of Power, Professor Chidi Onyia,who represented the Minister of Power, as well as the Chairman of NERC, Mr. Patrick Umeh, assured that the ministry was committed to ensuring transparency in the entire process.
They also pledged to support the FIRS in ensuring payment of appropriate taxes in order to impart on the nation’s Internally Generated Revenue (IGR) to lessen governments over dependence on oil revenue.ENDS

Power sector gets June 30 deadline to remit VAT revenue