FIRS Lacks Power To Facilitate, Implement Tax Waivers – Nami

FIRS Lacks Power To Facilitate, Implement Tax Waivers – Nami

September 21, 2022 Uncategorized 0

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami has said that the FIRS lacks the power or responsibility of facilitating or even implementing tax waivers to investors in Nigeria as there are relevant agencies of government that are charged with such responsibility.
This was contained in a statement signed by Special Assistant to the Executive Chairman, FIRS on Media & Communication, Mr. Johannes Oluwatobi Wojuola on Monday.
Reporters’Diary gathered that the Executive Chairman said this in a swift reaction to the news in circulation that some companies including Dangote, Sinotruck Limited, Lafarge, Honeywell, etc had been granted tax waiver on pioneer status between 2019 and 2021 in the sum of N16 trillion by the FIRS and the other Federal Government agencies.
The FIRS boss said that the mandate of the Service was to collect taxes due to the federation and the Federal Government and not to grant tax waivers to any taxpayer in the country.
He said that the Service was not unmindful of the objectives of granting tax waivers to investors which include “helping to grow local companies, stimulate economic growth, and earn investors’ confidence”.
He also said that he was “confident that the companies which are now enjoying tax breaks will eventually exit shortly and begin to pay taxes to the Federal Government as is currently being done by the companies that have equally enjoyed such tax breaks in the past and are now paying taxes in hundreds of billions of naira. Such companies will continue to pay taxes to the government so long as they remain in business.
“The companies enjoying the Pioneer Status will be exempted from paying only the Direct Taxes (eg CIT, EDT) from their profits but will continue to act as agents of collecting and remitting Indirect Taxes (eg VAT, WHT) in the ordinary course of their operations”.
He emphasized that he remained focused on the task of achieving the mandate of the Service which was to assess, collect, and account for taxes due to the federation and the Federal Government.
Nami said that this task “is challenging, more so at this time of global economic disruption occasioned by the Russia-Ukraine war and the Pandemic. However, the Management is steadfast in achieving the target set for it by the Federal Government.
“For instance, last year the Service surpassed its target by collecting an unprecedented amount of N6.4 trillion in taxes. So far this year, the Service is poised to perform even better than its record for last year.”
He then called on the stakeholders to join hands with him to grow the nation’s economy.

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