RMAFC Pushes for Broadened Tax Base to Boost Revenue

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) earlier announced that the commission has developed a new software that will help to enhance transparency in generating revenue and sharing amongst the three tiers of government.

This notice was made known by Mohammed Shehu, the commission Chairman when he had a briefing with the News Agency of Nigeria (NAN) in Abuja earlier on Saturday.

Shehu stated that the newly built software will help RMAFC function effectively in reviewing the revenue allocation formula for the country.

Also, Shehu mentioned that less than 40 million Nigerians are active in the tax net and payment of tax hasn't been going smoothly for some time, as millions chose to evade paying taxes. He said the number of active taxpayers was too low for a country with a population of more than 200 million people.

He also applauded the step taken by President Bola Tinubu for setting up the Tax Reform Committee, which he believes will bring transparency and growth to the commission.

This, he said,

• There is all this debate about the informal economy.

• What this tax reform committee that we have set up will do is bring a lot of agencies together, including RMAFC. We are a member of that committee.

• We have articulated our position and we will communicate what we believe can add value to the discussion.

• At the end of it all, we will have a better society where more people are paying taxes and the money will be utilized for better services and infrastructure so that every Nigerian can benefit.

He also advised the Federal Inland Revenue Service (FIRS) to work together with the Nigeria Customs Service (NCS) to detect those who avoid paying tax as required.

He continued,

• There are some taxes that the government is not getting from Nigerians.

• Somebody will declare an income of N600,000 in a year, but that same person will import a vehicle of N40 million into Nigeria.

• I believe the FIRS will look at all those things, and then collaborate with the NCS for better efficiency.

• If you import a brand new car, your name, your date of birth, your address, and your NIN number should all be required.

• They should do a search and see what it is that you filed last year, and how much taxes you paid to the government. Thereby, they will get a lot more people to pay taxes.

Also on those who evade tax, Mr Shehu to pay their taxes when due to give the government the strength to implement measures that will boost the economy.

He said, 

• I think it is very important for every Nigerian to try and pay their taxes because it is from those monies you get services.

• All the things that people like to tell you about a clean environment, good roads, and functional infrastructure in other countries, it is the taxes that citizens pay that are utilized for those services.

• People should learn to pay electricity bills, they should pay their water bills, they should pay just like you pay for telephone recharge cards.

• The more you pay your taxes, the more money the government has to put into road and rail construction, better hospitals, pensions, social security, and better plans to help the needy.