As part of efforts to boost the economy through taxation, Federal Inland Revenue Service (FIRS), says it may review tax exemptions and initiate taxation of high net worth transactions.
Speaking at the Stakeholders Engagement Forum, yesterday, in Abuja, Acting Chairman of FIRS, Kabir Mashi, said that with the assistance of Mckinsey, they have initiated eight key platforms to ensure that all the leakages in the revenues are blocked.
Other areas FIRS intends to block are activities of audits, arrears and debt enforcement, review of tax exemptions, evasion of rental taxes, taxation of high net worth transactions, registration, filing and communication as a means of enhancing compliance.
“We have started to implement these initiatives and we are already seeing results spread across the eight initiatives. We are therefore holding this forum in furtherance of our communication efforts, having held the first forum in Lagos in May 2014. While we regularly engage and interact with our taxpayers and stakeholders at different fora, this forum provides a more visible and highlevel platform for us to talk, exchange ideas and obtain feedback on what we are doing right and the areas where we need to do better. It also provides an opportunity to solicit the continued cooperation of our stakeholders to ensure that we are able to fulfill our core mandate of revenue generation in a manner that is sustainable and carries everyone along.
He stated: “In particular, let me use this opportunity to seek for the continued support of MDAs as you have a major role to play in ensuring tax compliance. First by making sure you comply with all relevant tax laws, which require you to deduct and remit withholding tax and value added tax promptly from all payments, which you make to contractors and service providers and also deducting and remitting personal income tax from your employees.
“In this regard, you should assist your staff in complying with annual filing requirements and also in processing tax clearance certificates through official channels, so that your employees do not patronise touts or obtain fake tax clearance certificates.”
He urged Nigerians to continue to assist FIRS with relevant data and information on taxpayers should the need arise and also verify tax documents, which contractors provide especially tax clearance certificates. Consequently, Mashi solicited the support of both corporate and individual taxpayers, warning that FIRS will not hesitate to invoke the relevant laws to sanction those who are not in compliance or who have not fully discharged their obligations under the law.
He said: “We urge you to please comply as we will not hesitate to invoke our powers of sanction under the tax laws and remember at all times that we are all partners with government in national development and that the revenues that are collected from you are a means of citizen participation in governance and your compliance with tax laws is a clear demonstration of good corporate citizenship.”
Also speaking, the Accountant-General of the Federation, Mr. Jonah Otunla, harped on the importance of growing the non-oil tax revenue of the country to finance the national budget.
“If we are to improve revenue collection, we will need to do more than we are currently doing. Our rebased GDP shows that our GDP to tax ratio is about 12 per cent, which is below the average of 20 per cent for other emerging economies.
“It is therefore necessary for FIRS to engage with all relevant stakeholders to find more effective ways of growing the non-oil tax revenues,” he said.
Otunla advised FIRS to do more in the area of public awareness on importance of tax so that taxpayers can understand their role in the nation’s development.
The AGF pledged his office’s continued support for FIRS to help improve and generate more resources for the nation.

Economy: FIRS to review tax exemptions, high networth transactions