The Federal Government has raked in $50 million from the introduction of Voluntary Assets and Income Declaration Scheme (VAIDS), The Chairman of Federal Inland Revenue Service (FIRS), Babatune Fowler has said.
VIAD was introduced in July as an initiative designed to encourage voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax.
This follows a nine month grace granted to all tax defaulters in the country by Vice President Yemi Osinbajo then as the Acting President to enable them make amend.
The scheme is being implemented by the FIRS in collaboration with all 36 State Internal Revenue Services and the FCT IRS.
Scheme allows the government to gather intelligence locally and through various international conventions and multilateral agreements to obtain information required for prosecution of defaulting taxpayers or those who make false declarations.
An international forensic and asset tracing company has been engaged to support this process.
Speaking at the Nigeria Governors’ Forum Secretariat (NGFS) annual IGR Peer Learning Event, FIRS Boss said barely four months into the launch, the country has been able to increase its earnings by $50 million.
The event which is part of NGFS strategic mandate to improve fiscal governance at the subnational level had in attendance all Commissioners of Finance of the 36 States and Chairmen of States’ Boards of Internal Revenue.
He went on, “I am glad to note that a lot of enquires have been made both at the state and federal level. At the federal level over $50 million have been realised through this scheme today. I will like also to use this opportunity to call on the general public to give total support to tax authorities and revenue agencies to enable us efficiently discharge our duties by collecting the needed revenue to fund government projects and services.
‘We believe that payment of tax is your contribution towards the society we live. As tax administrators, we have created a platform where other revenue agencies such as Nigeria Custom Service, Immigration and Federal Road Safety Corps work hand in hand to optimise revenue collection.”
The FIRS chairman expressed hope that the database of tax payers would be completed.
He also warned that from next year defaulters may not enjoy government services.
According to him, “On this note I will like to inform everyone here that the consolidation of our tax database is now being completed, this means that before end of the year 2017, wherever you are as long as you are a tax administrator, you hit the button and know the tax status of any individual and organisations regardless of where they are located.
“There will be also be a time when we ask other revenue agencies such as Customs and Immigration that services should be offered to only tax inclined corporation and individuals.
“We highlighted sometimes last year that before you get service from any of these organisations be it immigration for your passport renewal, issuance, you have to show evidence of your tax payment. I am glad to report that by the end of this year we will be in the position to confirm the tax status of individuals and corporate organisations and those that are in default will not be allowed to benefit from government services.”
Fowler, who noted that the peer learning event will enhance exchange of ideas which will enhance Revenue generation at this critical point of the nation, said, “To address the challenges we have discussed and the government has proposed to access and obtain information from all categories of tax payers through VAID, under this scheme all tax payers who are in default of payment will be required to voluntarily declare or income before 31 of March 2018.”
Fowler also noted that the Memorandum of Understanding (MOU) signed between the FIRS and various state revenue bodies is making progress.
He said the collaboration between the federal and states were necessary especially at a time the nation is facing economic challenges, noting that some arrangements to provide software and infrastructural facilities at all state offices; accountant general automation and deduction of payment of these taxes were all yielding positive results.
“I am glad to note that the governors and commissioners of finance have agreed in principle to update as all states have been signed on, we hope from this month on, all states will be complaint with remittance of VAT and holding tax as at when due.
This will not only increase IGR at the state level but will also increase IGR at the federal level. It also note that the VAT collected, 25% goes back to the states.”
The NGFS Director General, Asishana Okauru, said 23 states recorded growth in IGR, despite the recession in 2016.
He said “Overall growth in IGR was 20 percent from N687 billion in 2915 to N821 billion in 2016 – far up from a three percent contraction recorded previously. We have an opportunity to strengthen the reform environment, by replicating these reforms across other states. At the Nigeria Governors’ Forum Secretariat, we have resolved to play a more active role in this process. Through our HelpDesk Programme, we can provide technical assistance to states; and in the coming year, we plan to expand our support to other areas in public financial management.”
The NGFS has also entered into partnership with Department for International Development’s PERl Programme, the World Bank and the Bill and Melinda Gates Foundation, as part of the efforts to bring reforms to states.
