The Presidential Committee on Tax Policy and Fiscal Reforms has initiative moves to restrict the Nigeria Customs Service and 62 other Ministries, Departments and Agencies (MDAs) of the Federal Government from direct collection of revenue.
Taiwo Oyedele, the Chairman of the Committee, who spoke on Channels Television’s Sunrise Daily breakfast programme on Wednesday, said the Federal Inland Revenue Service (FIRS) will now collect revenue for the MDAs.
Oyedele, a former Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), said Nigeria’s revenue collection from taxes is one of the lowest in the world but the cost of collection is high.
“Ironically, our cost of collection is one of the highest. And the reason for that is that we’ve got all manners of agencies. The Federal Government alone, we have 63 MDAs that were given revenue targets last year, no; actually in the 2023 budget,” he said.
“And two things that would come up from that: on one hand, these agencies are being distracted from doing their primary function which is to facilitate the economy. Number two, they were not set up to collect revenue, so, they won’t be able to collect revenue efficiently.
“So, move those revenue collection function to the FIRS. It has two advantages: the cost of collection and efficiency will improve, these guys will focus on their work, and the economy will benefit as a result”, chairman of the Presidential Committee said. (Source: Channels TV).
