Ndubuisi Francis in Abuja
The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami, has launched a nationwide tour to sensitise the people, especially taxpayers on the 2019 Finance Act.
The first leg of the tour started yesterday in the South-west where he met with the Ogun State Governor, Mr. Dapo Abiodun, as well as FIRS officials from Ogun, Oyo and Osun states, in Abeokuta, the Ogun State capital.
A statement issued by the FIRS’ Director, Communication, Mr. Abdullahi Ismaila Ahmad, said Nami is on the tour with a select group of top management staff as well as the member representing the South-west on the FIRS Board, Chief Wale Ogunyomade.
In his address during the meeting with the governor, Nami solicited the support of the Ogun State government in realising the N8.5 trillion revenue target set for the agency by the federal government, stressing that “this comes back to the states and local governments as monthly allocations, which states and local governments apply to provide public infrastructure in your respective territories.”
Nami urged Abiodun to work closely with the FIRS to ensure a prompt collection and forwarding of withholding tax and Value Added Tax (VAT) on contracts, Company Income Tax as well as Stamp Duty, among others, stressing that the FIRS is now the sole government agency tasked with the collection of Stamp Duty on behalf of the federal government.
Responding, the governor assured him that “Ogun State would be found a worthy partner of the FIRS in achieving the service’s revenue target.”
He listed a series of reforms, which his administration has implemented towards making the state the investment destination of choice based on what he called the state’s “push factor” in relation to its proximity to Lagos State.
He sought closer collaboration with the FIRS in the area of VAT attribution or derivation, through which he said Ogun State was losing substantial federal allocation to Lagos as “many companies whose headquarters are in Lagos have their factories in Ogun State where their wholesale distribution sales are carried out but the VAT is attributed to Lagos.”
The governor also canvassed a collaboration with the FIRS in the area of capacity building in company tax audit for Ogun revenue generating agencies, for which Nami assured him of the FIRS’ cooperation.