Expert Praises FIRS for New Automated Tax System – Blueprint Newspapers Limited
SD&D Capital Management Limited Managing Director/CEO Idakolo Gabriel Gbolade hailed the Federal Inland Revenue Service for its outstanding revenue collection performance for 2021, saying TaxPro Max has helped the revenue collection process.
Speaking on Rising Tax Liability Amid Diminishing Purchasing Power, at the Annual General Meeting of the Financial Correspondents Association of Nigeria (FICAN) on Friday in Abuja, Idakolo noted that the leaps and bounds of the tax agency in 2021 were due to the introduction of the new automated tax administration system called (TaxPro Max) launched in June 2021 to allow taxpayers to benefit from an ease of registration, declaration, payment and issuance of tax clearance certificates, among others.
According to Idakolo, “There is no doubt that a system that incorporates these objectives and makes them the foundation of its services would benefit both taxpayers and the FIRS.
“The Federal Inland Revenue (FIRS), the government agency responsible for tax collection, has increased its tax collection campaign over the years, seeing it generate 4.95 trillion naira in 2020, which is 98% of her revenue target and she also generated 6 naira. 405 trillion government hedges in 2021 reaching 100% of their revenue target,” he said.
To boost tax collection in the country, the CEO of SD&D Capital Management Limited, said the Service needs to increase the education and awareness of its taxpayers so that they can effectively navigate the platform.
He said, “It should also be noted that some state Internal Revenue Services (IRS) like Lagos and FCT have seen great improvement in tax collection, with the FCT-IRS exceeding its target of N109 billion by N108 % in 2021.
“This performance would certainly help the government achieve its goals if properly channeled in the right way.”
He also called on the government to reduce its deficit financing so that there can be less money for debt service and more for key infrastructure projects.
He asserted that “the government should reorient its policies to embark on projects that can be financed even if funds are found for the execution of these projects.
“To further stimulate economic growth, the government should introduce a zero percent tax rate for new businesses for the first three years.
“The government should put more emphasis on job sustainability by aggressively increasing funding for SMEs, agriculture and the entertainment industry where more of our young people can secure sustainable jobs.
“The government should urgently focus on other quick wins that can spur economic growth, it is economic growth that increases revenue through foreign investment and improved corporate tax compliance and not the continued increase in the tax burden.
“Finally, the government must reposition the economy by stimulating consumer spending and improving the business climate for the private sector to thrive, because as the business environment improves and more businesses are formalized , the tax base will also widen.