Non-oil sector contributed 54% of N5.32trn 2018 revenue- FIRS

0
1834

The Federal Inland Revenue Service (FIRS) on Thursday disclosed that the non-oil sector contributed about 54 per cent of the N5.32 trillion revenue it generated in 2018.

Babatunde Fowler, FIRS Chairman, disclosed this in Lagos during an interactive forum on Tax Matters with the Manufacturers Association of Nigeria (MAN).

Mr Fowler noted that the manufacturing sector and other sectors under the non-oil sector have overtaken the oil sector in contributing immensely in terms of revenue generation to the nation’s economic growth.

He said that the Ease of Paying Taxes sub index under the World Bank’s Ease of doing business ranking shows that Nigeria currently ranks 171 out of 190 countries, having moved up 11 places from its 2017 ranking.

According to him, several initiatives were evolved to improve revenue collection and compliance, while reducing the cost of collection.

He said that the agency has lifted the lien placed on tax defaulters bank accounts for 30 days to allow them regularise their tax positions while apologising to businesses that were wrongfully affected by the accounts freeze.

Mr Fowler criticised the perfidy of businesses who collect Value Added Tax (VAT) and fail to remit to the government, saying era of tax evasion was over.

He said that FIRS in collaboration with the Joint tax Board and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) forged a partnership to improve the level of voluntary tax compliance by operators in the Micro, Small and Medium Enterprises sector.

Mr Fowler said that to support the growth of the sector, interests and penalties for unremitted taxes were waived for tax defaulters, a proposed special tax regime was being developed and commitment to patronise 40 per cent of locally produced goods.

Earlier, Mansur Ahmed, President of MAN, said that the association aligns with FIRS objective, which was part of the transformation initiatives of the present Administration that seeks to create a more prosperous and diversified economy.

“This is of significant importance, given the role of manufacturing in the industrial and economic development of our country and the concomitant effect on employment generation, technology acquisition, and wealth creation.

“Moving the government’s revenue away from oil dominated foreign earnings to more predictable sources have the potential to accelerate the country’s economic growth,” he said.

Mr Ahmed commended FIRS’ role in the last three years; acknowledging that revenue from taxes has significantly improved and becoming another credible source of government’s yearly budget funding.

SHARE
Previous articleBallot versus Bullet in Nigeria 2019 general elections
Next articleInvestors bid N234bn for N150bn bonds offer — DMO
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.