Saturday, November 23

Nigeria’s Aviation Sector to Feature in ‘Pilot Scheme’ on Tax Policy

NIGERIA’s Federal Inland Revenue Service says it will soon resume the implementation of automated Value

Added Tax and Withholding Tax deductions at source for the Aviation Industry beginning from September this year.

 

This is according to the Acting Executive Chairman of the Service, Mr. Kabir Mashi made this known on Wednesday in Abuja, at a one-day sensitisation workshop for FIRS Field Officers, Collection Agents and Banks.

The Pilot Scheme of the automation processes which is expected to go live in the third quarter of 2013 would cover other sectors such as Telecommunications, Power, and Financial Institutions.

Mashi, represented by the Coordinating Director, Direct Report Group (DRG), Mr. Onyekachi Ihedioha, also listed the automation of all our receipt processes, increase in the number of payment channels as well as the implementation of the Integrated Tax Administration System (ITAS) as among steps taken by FIRS to ensure increase tax revenue collection for the government.

He also disclosed that FIRS is collaborating with the commercial banks to make the Taxpayer Identification Number (TIN) mandatory for opening of an account and all transaction with the individuals and corporate bodies.

Mashi said “We have extended invitations to our Collecting Agents for their magnanimity in collecting and remitting taxes on behalf of the Service. Businesses now know that there is no hiding place for them anymore. Yes they can run, but they can no longer hide.

“We appreciate the level of cooperation thus far in the implementation of the Taxpayers Identification Number (TIN) system. We have achieved some significant mileage with the introduction of TIN and we hope the Banks will fully adopt the “No TIN No Account” option as we go on.’’

According to him, suffice it to say that efficient revenue management entails generating the maximum level of revenue without leakages, prompt delivery of quality services to the taxpaying public and high level of transparency and accountability.

He said while part of the ITAS project focuses on Taxpayers Registration using TIN, the Filing and Registration and Returns Processes, Payment Processing was being addressed by the collection automation project.

The FIRS boss explained “We have adequate mechanisms for proper analysis and monitoring of these initiatives to enable us address attendant challenges as they occur.

The success or otherwise of some of the above initiatives depended on the level of cooperation of agencies like the Nigeria Customs Service, Central Bank of Nigeria, Nigeria Civil Aviation Authority, Office of the Accountant General of the Federation

“I am sure you are all aware of the introduction of the Electronic Form M by the Nigeria Customs Service and the Central Bank of Nigeria. We have also keyed into this arrangement in such a manner that transaction involving the use of e-form M cannot be processed without a valid Taxpayers Identification Number (TIN).

Equally important for the success of this idea is the level of cooperation of Banks, we therefore solicit for your assistance in the implementation of this and other various initiatives.’’

Mashi noted that the Service at inception focused on efficiency in collection, assessment and accounting, adding that: “While the primary mandate remained unchanged, a lot has since changed from process reengineering to process automation through our modernisation programme’’.

He assured participants of the Service commitment to keeping its mission statement to operate a transparent and efficient tax system that optimises tax revenue collection and voluntary compliance.

The sensitisation workshop organised by the FIRS Revenue Accounting Department (RAD) featured presentations by Mr. M. K. Dikwa, Director, Funds Office of the  Accountant General of the Federation on“Government Integrated Financial Management Information System, GIFMIS and Implementation of Treasury Single Account (TSA) by Federal Government of Nigeria (FGN)– the Role of CBN, DMBs and MDAs. by Chris Nkwonta, Deputy Director, CBN,

FIRS Director, Revenue Accounting Department,Sofura Seghosime discussed Ethics and Expectations of the FIRS from Collecting System Parties: Banks, MDAs, FIRS Offices and other Taxpayers and the Role of FIRS Offices, MDAs and Banks,  O. O. Adediran Director, FIRS Taxpayer Services Policies and Processes and Programmes Department spoke on the role of the  FIRS Offices, MDAs and Banks.

 

EMMANUEL OBETA

 

Director,

Communications & Liaison Department

19TH June 2013

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