Tunde Fowler
Tunde Fowler

The Executive Chairman,The Federal Inland Revenue Service (FIRS) said it had set specific strategies to increase tax collection to drive its proposed targets in 2016.

Mr Tunde Fowler, Executive Chairman of the Service, stated this in a document he signed which was made available to the News Agency of Nigeria on Wednesday in Abuja.

He said that the overall target was to ensure that Valued Added Tax (VAT) and Corporate Income Tax (CIT) became the largest contributors to tax collection in 2016.

Fowler said that in ensuring that VAT and CIT contributed more, the service would also ensure that collection from other taxes were significantly increased.

READ ALSO  It’s risky to drive without licence – FRSC

The chairman said that the strategies to achieve its targets included ensuring a minimum of 90 per cent compliance across all tax types and all taxpayer categories.

He said that the service would achieve 90 per cent compliance by increased focus on sector based audits to ensure that all audit backlogs were cleared.

Fowler said that the service would ensure maximum possible registration of taxpayers and would ensure the use of technology to block leakages and improve efficiency in collection.

He said that the service would strengthen tax administration by appointing new sector heads to drive tax compliance in the identified sectors, to improve performance management.

READ ALSO  NCS induces code number for vehicle duty clearance verification

Fowler said that the service planned to improve in-house capacity building by training and re-training of staff sectors to improve working relationship with state boards of internal revenue on data sharing and joint audits.

He said that the service would increase use of taxpayer education, publicity and enlightenment to achieve improved compliance.

According to him, the service had begun extensive nationwide tax audit to enable the service to ensure strict compliance with the provision of tax laws.

Fowler added that the service had also planned to carry out extensive nationwide tax compliance in 2016.

He said that the service had started the pasting of non-compliance stickers on business premises of identified companies that had not filed and paid taxes for the last six months, including the newly registered companies.

READ ALSO  I must eliminate poverty in Osun – Aregbesola

The chairman said that more than 24,500 non-compliance stickers had been pasted to date and the exercise would continue through the year.

Fowler said that significant drop in oil prices in 2015 fiscal year had led to significantly lower collection from Petroleum Profit Tax (PPT), adding that the service would focus on non-oil taxes to meet the shortfall in the revenue collection.

NAN recalled that FIRS boss in February proposed a revenue target of N4.957 trillion for the service.