The Federal Government is considering increases in taxes as an option to fund the shortfalls from oil revenue in the 2009 budget.
The hint was dropped by the Executive Chairman of the Federal Inland Revenue Services (FIRS), Mrs. Ifueko Omoigui-Okauru.
She disclosed that the global financial meltdown affecting international market prices of commodities including crude oil, which is the major source of government revenue is worsening as crude oil prices dropped to $55 per barrel on Monday just $10 over the $45 benchmark the 2009 budget is being predicated.
This means that next year Nigerians, corporate bodies, oil companies are expected to pay higher taxes.
Giving reasons why Nigerians will be required to pay higher taxes next year she said "The international price of crude oil has moved from an all time high of $140 in the year to about $55 per barrel this week.
This poses a great challenge on all of us to work hard for survival through partnering to fund the shortfall from non- oil sources which includes taxes" she said.
She disclosed that the FIRS's responsibility is to administer the tax laws and account for taxes collected on behalf of the government, which does not include how the tax money is spent nor to direct where it should be spent.
These taxes, she said, are petroleum profits tax collectible from the oil producing companies, companies income tax payable by limited liability companies, value added tax payable by individuals and companies, capital gains tax payable by limited liability companies on gains from disposal of certain properties, personal income tax payable by residents of Abuja, non-resident individuals, members of the armed forces and the police and foreign affairs officers, education tax payable limited liability companies, information technology development levy payable by limited liability companies and withholding tax payable by limited liability companies as part of advance payment of companies' income tax.
On the Taxpayer Identification Number (TIN), recently introduced by the Services, she said it will enable Nigerians solve the problems faced by taxpayers in tracking and obtaining value for their withholding tax credit notes. As part of the FIRS reforms, she said that the FIRS is pursueing international best practices in the administration of tax policies by simplifying and computerising processes to reduce collection and compliance costs. The taxpayers, she stated, have been identified as kings and are being treated as such in their various offices.
In a parley with reporters, Mrs. Okauru advised Nigerians to join the new face of FIRS in obtaining their TIN and pay their taxes as and when due, saying that the benefits of having a TIN is that without it, the banks will not accept an individual or a company's payments and that their tax file will not be updated.
"In this direction, we have since commenced the automation of all aspects of our processes starting with collection process through banks under our project FACT (Paydirect). Some of you can testify to the efficiency of this since introduced. We have already commenced the second phase of e-payments and automation which involves taxpayer database development using Taxpayer Identification Number (TIN)
Comments 1 to 2 of 2 Post a comment
That is the effect of procrastination that this visionless administration has been touting as Rule of law, now Tarry-A-Doer is using the global financial crisis as an excuse to worm his way out of been held accountable for his lack of vision and the consequent decline in our growth levels while govt corruption continues to escalate. Who is he going to tax? The vast unemployed Nigerians whose majority earns less than a dollar per day. I can't wait to see how far the revenue collected would be stretch to cover govt's spending on infrastructural development. What a waste - Nigeria would've been better off if 3rd term was granted to OBJ's administration.
I have once advocated the use of Fiscal policies in tackling the shortfalls in oil Revenue. In my view,I think that even when it is impossible to realize any revenue from other sources of government revenue, the tax system is readily available. I think it is important to widen the tax system in Nigeria. There are a thousand and one other tax sources we can utilize. If countries like the UK and the US depend a lot in their tax revenue, we can do same. For instance, we are aware that many Nigerians are exceptionally rich, some owning about 5 cars alone while some own more. the Federal government can call a meeting/seminar of the stakeholders of our economy,table the issue and allow them to comment. I am aware that it will not go down well with them but necessity has necessitated that. The organizer needs to convince them that such is for the good of most Nigerians and a STRONG promise that the tax-payers' money will be used judiciously. We should understand that one day, this our oil and its price will crawl.It will affect both the poor and the rich. I still want to reinforce that come rain, come shine, we can always get a veritable revenue from our tax system. This does not mean that it is the only means of getting out of this problem. It is of importance to note that we can't substitute anything else for 'DIVERSIFICATION OF OUR ECONOMY' and 'PRODUCTION OF FINISHED GOODS AS A SUBSTITUTE FOR RAW COMMODITIES', 'AGRICULTURE', ETC. I have always put up a question asking thus-'WHERE ARE OUR ENGINEERS' some of who boast of their certificates as mechanical engineers, Computer Engineers? I think these are the least productive Nigerians. I hope that in my next write-up, i will examine some critical issues facing our country. Blesxzoh-UNEC