FIRS loses N217b to tax waivers to individuals, institutions

Indications emerged on Thursday that the Federal Inland Revenue Service lost at least N216.92 billion to tax wavers and exemptions granted to individuals and Institutions.
The development was revealed in a report submitted to and considered by the National Conference by the Conference Committee on Public Finance.
According to the report, that forms part of the challenges facing the Federal Inland Revenue Services.
The report also said there is the lack of accountability on the usage of tax collected.
For example in 2012 and 2013, the FIRS lost N203.36 billion in companies income taxes and N13.56 billion in education tax.
The report also stated that the total crude oil lost for both upstream and downstream pipelines losses for 2009 to 2011 amounted to $11.888 billion.
This was in spite of $600 million that was spent on military security to guard oil and gas facilities.
Already the Conference on Tuesday passed some of the recommendations of the committee on Public Finance.
Part of the recommendation is that henceforth, government agencies responsible for revenue generation and collection must comply with Section 162(3) of the 1999 Constitution, which requires them to remit gross revenue in full to the Federation Account and resort to normal budget process of obtaining budget approval from the National Assembly to fund their operations.
Consequently, Conference resolved that all the sections of the enabling Acts of these departments and agencies of government that allow them to retain revenues and surplus to fund their operations be amended.