The Federal Inland Revenue Service (FIRS) has stated that Nigeria’s non-oil sector would generate 80% of the country’s revenue in the next three years.
According to the Head of Communications and Servicom Department, Mr Wahab Gbadamosi FRIS yesterday, the chairman of the service, Mr Tunde Fowler said so at the Nigeria-Canada Investment Summit where he explained the contributions of the non-oil sector to the Nigerian economy.
The FIRS boss disclosed that with increased fluctuations in the prices of oil, the attention is now on the non-oil sector which is more sustainable. Mr Fowler explained that the non-oil sector contribution to the Nigerian economy would increase from 54% in December 2018 to 60% in November this year.
“W are moving from oil-dependent to non-oil dependent economy. We believe that in the next three years, the non-oil sector is going to contribute at least 80 per cent of the total revenue.”
Meanwhile, the FIRS has also disclosed the increase in non-oil contribution to the country’s economy would be attributed to increased collection of valued added tax and an Integrated Tax Administration System.
“You may ask where is that going to come from. It is going to come from agriculture,”, he said. He identified auto Value Added Tax (VAT) collection as one of the strategies adopted to improve revenue.
“There is the automation of VAT collection in key sectors which facilitates a reduction in compliance cost in the long term, there is a system to system integration between banks and FIRS.
“VAT collection in the banking sector went live in January 2017 and from January to October 2019, N25.6 billion had been collected so far. “VAT collection in the Cable TV sector went live in December 2018 and generated N5.1 billion so far from January to October 18, 2019.
“Integrated Tax Administration System (ITAS) project is a sort of programme that enables the automation of FIRS tax processes. “As part of the Service’s objectives to bring high-level efficiency to tax revenue collection and provide first-class services to taxpayers, ITAS project introduced SIGTAS, a solution that covers all aspects of tax administration in one integrated system.”
However, Mr fowler said improved intelligence gathering would also help increase tax collection, as FIRS collaborates with the office of the Accountant-General for data exchange.
“Government Information Financial Management Information System (GIFMIS) is an interface linking FIRS to the Office of the Accountant– General of the Federation (OAGF) for real-time exchange of information and data.
“State Offices of Accountant-General Platform (SAG) Automates the deduction at source and remittance of VAT from State governments contract payments directly to FIRS’s account and so far, N13 billion has been collected,” Mr Fowler.