Connect with us

Business

Govt loses huge revenue to random tax waiver –FIRS boss

Published

on

FIRS opens 30-day window for taxpayers to obtain tax certificates

Granting tax waivers to big companies indiscriminately do not only erode government’s revenue base, but also hinders the Federal Inland Revenue  Service (FIRS) from meeting its target, the agency’s boss has said.

Muhammad Nami, the FIRS Chairman, made the disclosure Thursday at a senate interactive session with revenue-generating agencies in Abuja, saying random tax waiver alongside factors like illicit financial flows abroad and outrageous overhead costs cause the country enormous revenue leakage regularly.

“Nigeria loses a lot of revenue through tax waivers granted to big companies which otherwise would have been taxed to buoy up government revenue.

Read also: NSE: Bank stocks dominate trade as index rises further

“Also, illicit financial flow is a major cause of revenue loss to Nigeria. Coupled with this is the operational cost of the FIRS which is also high compared to the statutory provisions for the running of the organization,” Mr Nami said via a statement by the FIRS Director of Communications and Liaison.

The service has been facing a major challenge of meeting its revenue target over the past years, resulting in a cumulative deficit of N4.88 trillion.

It made a sobering revelation last Friday when the agency’s chief said the country lost N3.635 trillion ($10 billion), translating to more than one-third of its 2020 budget, annually to profit-shifting activities of multinationals, who move profits from Nigeria to lower-tax countries in order to avoid paying taxes on the profits made in the country.

 

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations