Ime Akpan
Says banks will start collecting VAT on online transactions
The Federal Inland Revenue Service (FIRS) has said that it generated N1.5 trillion as revenue in the first quarter of 2019.
The chairman of FIRS, Mr. Babatunde Fowler, who disclosed this at the weekend in New York, United States said the figure represented N330 billion or 28 per cent of the N1.17 trillion the agency made in the corresponding period of 2018.
Fowler said the first quarter figure represents 18.7 percent of the agency’s total revenue target of N8 trillion for 2019.
He said the amount included revenue from non-oil taxes that were 11 per cent higher than what the agency realised from that sector in Q1 of 2018.
The chairman said money realised in the first quarter of the year included revenue from non-oil taxes that was 11 per cent higher than what the agency realised from that sector in the first quarter of 2018.
“In the first quarter (of 2019), what I will say is that in the non-oil sector, we generated 11 percent higher than what we generated in 2018. Basically, we have generated about N1.5 trillion,” he said.
Furthermore, he said the N1.5 trillion revenue generated in Q1 is about 18.7 per cent of the agency’s total revenue target of N8 trillion for 2019.
Fowler said the N8 trillion revenue target described by economy watchers as quite ambitious, was realistic with the cooperation of tax payers, among other factors.
“It is quite realistic as long as we have the cooperation of tax payers in addition to deployment of technology,” he said.
“We have already started the enforcement of over 50,000 accounts that have banking turnover of 100 billion and above that have not filed their returns.”
Fowler also stated that banks would be instructed to collect tax on online transactions.
“Soon, we will ask banks to impose VAT on online transactions for purchases of goods and services.
“Not that it is something new; it actually should be in existence. We will certainly follow up to make sure that every VAT that is due to be collected is collected,” he said.
He explained that the move was part of measures by FIRS to meet its N8 trillion revenue target for 2019.
Fowler said the agency had started taking action against companies and businesses that refuse to embrace the federal government’s tax amnesty programme.
According to him, FIRS hopes to generate between N750 billion and N1 trillion from the clampdown, which includes closure of defaulters’ bank accounts.
“We are going after everybody. I am sure you have heard that we have placed lien on some accounts of defaulters that have a billion naira turnover annually. So certainly, we are not leaving anyone out of the tax net,” he said.
The FIRS chairman also spoke of plans by the agency to surpass the over N1 trillion it realised from VAT in 2018.
“We will get more people into the tax net and deploy more technology. We have what we call Auto VAT Collect and that basically assists tax payers at the point of transaction, and the VAT portion is sent straight into the federation account.
“So, we know that there is more room for growth in the VAT sector,” he added.
With NAN report
