Business
FIRS Set To Implement New Tax Regime
The Federal Inland Revenue Service (FIRS) would soon be implementing a Presumptive Tax Regime to get more Nigerians, especially those in the informal sector, to pay tax
Acting Executive Chairman, FIRS, Alhaji Kabir Mashi made the declaration in Abuja at a stakeholder’s sensitisation workshop.
He said that the idea of the regime was to help the informal sector to keep their books and records and to enable them to understand the tax system and how to use it to improve their business.
He said no amount had been fixed as possible tax under the regime, but noted that more money would be collected for the government in the process stressing that “it is our belief that if we are able to implement a workable presumptive tax regime, it will create improved and easy access to tax system for the large pool of taxpayers in the informal sector.
He said this will enable us to not only grow that tax base across the three tiers of government, but more importantly, improve tax collection from non-oil tax revenue stressing that if we are able to do this successfully, we will be contributing to the overall development of the Nigerian tax system and the Nigerian economy.’’
Mashi said the FIRS had examined the experiences of other countries and tried to tailor collectable tax from the informal sector to be in consonance with Nigeria’s peculiarities.
“This is necessary because of our peculiar situation, where we have three taxing levels – the federal, the state and local government, whereas most of our tax laws are federal laws, but administered across the three tiers of government.
“In addition to this, we have a large pool of taxpayers and potential taxpayers in the informal sector in Nigeria who can contribute significantly to tax collection if they are properly assisted to comply with the laws,’’ he added.
He said that it was necessary to ensure that the compliance was attractive to encourage each taxpayer to participate and to be treated fairly.
He urged participants to seize the opportunity of their attendance at the workshop to make useful contribution to enable the FIRS to evolve the most appropriate way of administering a presumptive tax regime in Nigeria and also to harness its benefits.
FIRS Coordinating Director, Standards and Compliance Group Mr. Andy Ejemeyovwi, in his contribution, said that the initiative was critical to the development of tax system in the country.
He noted that evasion had remained an issue in Nigeria’s tax system, adding that there was the need to tackle it for the growth of the economy.
“In order to find a lasting solution to this teething problem of taxation in Nigeria, FIRS management has considered the various submissions of the Presumptive Tax Regime and approved the hosting of this sensitisation workshop in order to expose the thinking of the relevant authorities in the administration of Presumptive Tax Regime in Nigeria.
“How best can we handle the various problems limiting the smooth administration of presumptive tax in the informal sector as well as help effective traders to maintain some records of transactions generated and assist them to know whether they are running at a loss or making profit?
“This is on the way to getting them appropriately taxed.’’
He said Ejemeyovwi said that the initiative had worked very well in most West African countries and expressed the hope that it would be implemented effectively in Nigeria.
He urged tax administrators to make adequate contribution that would help to adopt best policies that would aid the smooth implementation of the regime in the country.
Also, Chairman Plateau State Board of Internal Revenue, Mrs. Rauta Jat, said that states’ tax administrators had problems with accessing the informal sector.
She said that the idea of the Presumptive Tax regime was an idea in the right direction as the states would benefit more from it.
“We are happy that the FIRS and the Joint Tax Board have decided to address this issue speedily.
Some Commercial drivers in Port Harcourt have said that the Federal Government’s N1,350 fuel discount is yet to reduce their daily operating cost.
A cross session of commercial drivers who spoke to The Tide correspondents in Port Harcourt said they are yet to feel the impact of the government discount, adding that most filling stations in the city are even selling above the pump price
A driver Jude Ogbo who operates the mile 1 Rumuokoro axis of Port Harcourt said plies the discount has not reflected in his daily fuel expenses.
“Since the discount was announced, many filling stations still sell at the old price. When you go there, you discover they sell you two litres at the price of one. For now, we have not seen any reduction,”_ he said.
Another commercial driver, Comrade Ishmael Uzeho who operates within the Port Harcourt metropolis, said the discount is not being implemented across the country.
“How has the discount affected us? I will say it has not. Many stations are not working. Only NNPC is working and that is just one person in the whole country. If government really wants to help, let the fuel price go down properly,”_ he said.
Uzeho added that if the price of fuel goes down, transport fares will also go down. He noted that his route fare has remained at N500.
On his part, Mr. Moses Dapa, Supervisor at Sam Jaja Foundation Transport Company, said the company has not increased its fares despite the high cost of fuel.
“We are still running normal price. We charge N2,000 and N5,000 depending on the destination. We will not increase our price. I don’t know about other parks, but for Sam Jaja, we are maintaining normal price,”_ Dapa said.
He appealed to passengers to understand that drivers are not using high fuel price as an excuse to charge excessive fares.
Other drivers who spoke said the federal government should monitor the NNPCL retail stations to ensure that the directive is implemented.
Recalled that The Federal Government in abid to reduce transportation cost in the country had announced a 30-day margin discount at NNPC Retail stations across the country from October 1 to 31,
However investigation revealed that the policy is yet to affect transportation cost in the country.
By; Stephens Sopakriba and Saint Davies
In a press statement released to The Tide’s source on Friday in Abuja, the group said Nigeria had a significant resource advantage due to its vast natural gas reserves.
“At a time when global energy markets face unprecedented volatility and rising operational costs, Nigeria stands on a massive resource advantage with its vast natural gas reserves,” the group said.
Highlighting this potential, Alfa Designs urged the nation to move past complaints over energy costs and aggressively embrace Compressed Natural Gas (CNG) as a sustainable engine for economic growth.
While federal policy adjustments have sought to cushion the impact of global energy shocks, industry experts emphasised that long-term relief hinges on a rapid, nationwide transition to gas.
“Transitioning away from expensive traditional petroleum products promises to ease the financial burden on ordinary citizens.
“It will also reposition Nigeria as an attractive industrial hub capable of drawing foreign direct investment and driving job creation,” it said.
To demonstrate the practical feasibility of this transition, the group said it recently partnered with a global Original Equipment Manufacturer (OEM) to lower the entry barriers for commercial drivers.
“By negotiating directly with the manufacturer, we reduced the total cost of acquiring and installing a CNG conversion kit for commercial tricycles (commonly known as Keke NAPEP) from up to N700,000 down to under N450,000.”
The group said this shift offers dramatic immediate financial benefits for local operators, with petrol currently selling at roughly N1,390 per liter.
It said that, in comparison, at a CNG equivalent price of about N98 per liter, a daily commercial driver using 10 liters of fuel reduces its daily energy expenditure from N13,900 to N3,980.
“This represents a daily net savings of N9,920, or more than 71 per cent.
“Over a standard 26-day working month, drivers save over N257,000, allowing them to fully recover the cost of the CNG conversion in less than 46 operational days.”
The company further stated that when scaled nationally, the economic implications are monumental.
“Nigeria consumes approximately 50 million liters of gasoline daily, costing roughly N69.5 billion per day.
“A nationwide 71 per cent reduction in fuel expenditure would generate daily national energy savings of N49.6 billion.
“On an annualised basis, this shift equates to approximately N18.1 trillion, or $13.5 billion, kept within the domestic economy.”
The group added that those recurring national savings would offer a vital mechanism to help address Nigeria’s estimated $2.3 trillion infrastructure deficit.
It said reinvesting those funds into the economy helps eliminate the 30 to 40 per cent operational overhead currently consumed by imported fossil fuels.
“The resulting boost to corporate margins expands the national tax base, generates reliable user-fee revenues to make major transit projects bankable, and creates a self-sustaining financial cycle,” it said.
