Nigeria Must Review Tax Regime to Boost Revenue—Fowler

By Dipo Olowookere

Chairman of the Federal Inland Revenue Service (FIRS), Mr Babatunde Fowler, has stressed the need for Nigeria to review its existing tax regime if the nation wishes to continue to boost its revenue and provide basic needs of citizens.

Speaking on Monday in Lagos at a stakeholders’ meeting, the tax chief said taxation remains the best alternative option for government to generate revenues needed to provide for the people.

Mr Fowler told participants that he is optimistic that Nigeria will further move forward through taxation.

“It is clear that taxation is the most sustainable of all government revenue sources and efforts must be made to grow the tax base for government to have enough resources to carry out its basic functions.

“If the way forward requires a review of existing legal framework or legislative reform, there is no doubt in my mind that we have willing and able partners in National Assembly, FIRS Board and the Joint Tax Board to do this,” the tax boss said.

Speaking further, Mr Fowler noted that over-reliance on oil made it impossible for some state governments to pay workers’ salaries in 2016, which necessitated the release of bailout funds to governors as well as Paris Club refund by the FG.

“For us in Nigeria, a decline in receipts from oil revenue and decline in accruals to states from the federal account has placed many states in a financial quandary, to the extent where basic obligation such as the payment of employee wage has become a perennial challenge.

“Therefore, there cannot be any serious discussion on diversification of the nation’s revenue generation without reviewing the country’s tax regime for optimal performance.

“Between the resource persons, we have invited our own staff and our stakeholders.

“We hope to draw from a wide spectrum of perspectives on how best to move forward,” he said at the FIRS 2018 Management and Stakeholders with the theme, ‘Optimizing Tax Administration with Parliamentary Synergy.’

The FIRS chief also disclosed that in 2017, the agency collected N4.03 trillion as tax compared with N3.3 trillion generated in 2016.

He expressed optimism that in 2018, the amount would rise, especially with the Voluntary Assets and Income Declaration Scheme (VAIDS) put in place by the Federal Government.