Ndubuisi Francis in Abuja
The Federal Inland Revenue Service (FIRS) raked in N2.5 billion from three domestic airlines between 2014 and 2017 through its automated Value Added Tax (VAT) remittance platform, VAT Collect.
FIRS’ Director, Information Communications Technology (ICT), Mr. Kola Okunola made this disclosure in Abuja at a training session for finance journalists, organised by his organisation.
Aero, Dana and Medview are the only local airlines hooked on VAT Collect, Okunola, said, noting that they constitute the lower end of the market.
“Arik Air, Air Peace, Azman and others are not yet on this electronic platform. Arik Airline controls up to 70 per cent of the market share. So, by the time Arik and others come on stream, we hope to rake up to N10 billion annually from VAT from domestic airlines,” he explained.
He also revealed that plans were in the offing to extend the automated VAT collection package to mega stores, the telecoms sector, oil and gas industry and other sectors of the economy.
The FIRS and the Corporate Affairs Commission (CAC), he added, have jointly developed platforms that allow Nigerians in diaspora to register their companies online.
His words: “You can now register a business end to end without physical contact. It is part of government’s ease of doing business package. We want to do away with physical human contact because that is where bribery comes in. We want this to stop.”
Okunola also revealed that about 105 Ministries, Departments and Agencies (MDAs) have been brought into an electronic platform it operates in collaboration with the Office of the Accountant-General of the Federation (AGF), where withholding tax and VAT are automatically deducted.
“Our platform will work with the Government’s Integrated Financial Management Information System (GIFMIS). FIRS wants to incentivise good behaviour. 105 MDAs are for the pilot scheme. Eventually, all MDAs will fall in line. We are targeting digital tax administration and we are planning to have a contact centre that will come on stream between now till the end of the year. We have the federal engagement and enlightenment tax team that educates tax payers all in our bid to widen tax literacy,” he said.
