Expert commends FIRS on new automated tax system

The Managing Director/CEO of SD&D Capital Management Limited, Idakolo Gabriel Gbolade has hailed the Federal Inland Revenue Service for its stellar performance in revenue collection for 2021 saying TaxPro Max aided revenue collection process.

Speaking on the subject: Rising tax obligation amid dwindling purchasing power, at the Annual General Meeting of the Finance Correspondents Association of Nigeria (FICAN) Friday in Abuja, Idakolo noted that the giant strides of the tax agency in 2021 was due to the introduction of the new automated tax administration system called (TaxPro Max) launched in June 2021 to enable taxpayers experience ease of registration, reporting, payment and issuance of Tax Clearance Certificates among others.

According to Idakolo, “There is no doubt that a system which incorporates these goals and make them bedrock of its services would benefit both the tax payers and FIRS.

“The Federal Inland Revenue (FIRS) the government agency saddled with the responsibility of tax collection has been increasing its tax collection drive over the years seeing it generate N4.95 trillion in 2020 representing 98% of its revenue target and it also generated N6.405 trillion into government covers in 2021 achieving 100% of their revenue target,” he said.

To boost tax collection in the country, the CEO of SD&D Capital Management Limited, said the Service needs to increase its tax payers education and sensensitization so they can effectively navigate the platform.

He said: “It is also worthy of note that some state IRS (Internal Revenue Services) like Lagos and FCT have recorded great improvement in tax collection seeing FCT-IRS surpassing its target of N109 billion by 108% in 2021.

“This performance definitely would assist the government in achieving its objectives if properly channeled the right way.”

He also called on the government to reduce its deficit financing so that there can be less funds for debt servicing and more for key infrastructural projects.

He averred that the “government should redirect its policies to embark on projects that can fund itself even if funds are sourced for the execution of such projects.

“In order to spur more economic growth, the government should introduce zero per cent welcome Tax rate for new businesses for the first three years.

“The government should lay more emphasis on Job sustainability by aggressive increasing funding for SMEs, Agriculture and the entertainment industry where more of our youths can get sustainable jobs.

“The government should as a matter of urgency focus on other quick wins that can boost economic growth, it is economic growth that increases revenue through inward investments and increased tax compliance by businesses not by continuous increase of tax burden.

“Finally, the government needs to reposition the economy by boosting consumer spending and improving the business climate for the private sector to thrive, because as the business environment improves and more businesses are formalised the tax base will also expand.