Hold your govs accountable, states earn 85 per cent VAT, says FIRS

By Msugh Ityokura

The Federal Inland Revenue Service, FIRS has disclosed that 85 per cent of the Value Added Tax, VAT generated by the service goes to state governments while the Federal Government, FG retains just 25 per of the funds

The service has therefore, tasked Nigerians on active participation in governance by holding their leaders, especially state governors accountable for their financial expenditure.

The Director, tax payer service department, of FIRS, Loveth Ononuga spoke at a “One Day Strategic Tax Communication Session” organized by the service in Abuja on Friday.

“It is important to let you know that 85 per cent of VAT goes to state governments for development while the Federal Government retains the remaining percentage” she said.

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Speaking further, Ononuga underscored the importance of tax payment, saying government, especially the present administration has prioritized critical infrastructure as manifest in the ongoing roads construction across the country.

She said the government was working to harmonize tax collections to tackle the issue of multiple taxation and illegal taxes adding that when passed into law, the four proposed tax bills will address the menace.

The Director, communications and liason department, Abdullahi Ismaila had earlier lamented the tax payment culture of Nigerians which he said was too low, stressing the need for awareness to have more tax payers in the nation’s tax net.

Through clarity and consistent communication, Ismaila said the people can begin to see reason why they should not renege on such a responsibility.

He praised the present administration for introducing the four tax bills, saying the previous tax laws were obsolete hence the need for modernization to suit modern needs.

In his presentation titled “effective communication strategies for tax awareness” need to educate tax payers on tax laws in the best suitable language the director emphasized the use of simple tax language for effective communication to achieve the desirable results.

The event aimed to abreast media practitioners with the technical aspects of tax reportage which is integral to transparent, compliant, and effective tax administration.

It is hoped that by establishing robust data management systems, adhering to international best practices and embracing innovative communication strategies, tax authorities can significantly enhance public engagement and trust.