UBA ads

In a period the Nigerian government is looking to increase its revenue base, foreigners with business visas are reportedly taking advantage of the Free Trade Zones to evade tax payment for businesses and work done in Nigeria.

Illegal foreigners are revenue leaks: It was disclosed that the foreigners were going about their business activities without valid visas, as the ones with them already expired. This means that the affected foreigners are in the country illegally and using the Free Trade Zones as their shelter. This is the migrants’ method of evading the taxes that should be paid to the Nigerian government

7.5% VAT: Implementation to begin Feb 1 – FG, FIRS redeploys 50 directors in massive shakeup ,FIRS moves to stop tax evasion with newly launched intelligence system , FIRS boss, Nami discloses why FIRS failed to meet revenue target under Fowler, FIRS to scale up tax compliance with new policies , FIRS tighten noose on deduction of stamp duty, CIT, others 
Muhammad Nami

According to the Chairman, Senate Committee on Ethics, Privileges and Public Petition, Senator Ayo Akinyelure, the foreigners with expired visas were having permanent stay without government approval. They were also not remitting their taxes to the government as a result of their illegal stay.

“We were made to know that some of them come in with only business visa and after the expiration of three months of stay, they disappeared into different areas of the country like the Free Trade Zones.

“When you look at the Free Zones today, the majority of workers there are Asians who came into Nigeria for business visit and before you know it, they have permanent stay without the approval of government and without paying kobo into government revenue coffers.

“We believe that the Senate Committee on Interior in the ninth Senate is aware of this and the Committee of Public Petitions is also aware of this.

“So we are calling on the Minister of Interior to be on the same page with the National Assembly for the lawmakers to give them the Bible of Revenue generation in its agencies,” Akinyelure said while suggesting that in order to curb this evasion, the Nigerian Immigration Service needed to prevent migrants’ influx into Nigeria.

[READ MORE: FIRS to brace up on tax compliance policies)

Tax evasion harmful to Nigeria: Recall that the Nigerian government had intensified its revenue mobilisation effort because the Finance Minister, Zainab Ahmed, said Nigeria had a revenue problem. This has led to frantic effort to beef up revenue through several channels including tax reform to fund capital projects.

Recall that the Executive Chairman of Federal Inland Revenue Service (FIRS) Muhammed Nami already expressed doubt over the possibility of meeting President Buhari’s N8.5 trillion revenue target. With this level of tax evasion by migrants, the chances of achieving it continue to look slimmer. And failure to mobilise the needed revenue will affect the completion of capital projects.

It also increases the need for the Nigerian government to borrow, therefore compounding Nigeria’s debt problem. Akinyelure said the country can no longer afford to continue borrowing just to finance budget and infrastructure.

app

1 COMMENT

  1. Oga senator abeg .
    I do not think that it is possible to evade direct and indirect taxes in Nigeria .
    If at all that there is anything like “free trade zone” in Nigeria which I doubt , I do not think that business would thrive in such places as for a foreigner to go and invest in such places .
    It is also said , since the inception of our great country Nigeria , it was stated constitutionally that all persons in the geographical location called “niger area” or “area around the river niger” would automatically become Nigerians in as much as they may have family ties with other people or persons in other countries .
    As for migration or traveling from one country to another , there are certain laid down rules and regulations as stated in the Constitution of the federal republic of Nigeria which is in turn enforced by the various law enforcement agencies such as the customs and immigration services , airport authorities , sea port authorities , inland revenue service , the Nigerian police and other security agencies and law enforcement agencies within the country .
    Therefore , I see it as an image damaging statement to the government of Nigeria as a whole and as a statement that would ruin the reputation of our great country Nigeria in the international scene and in our diplomatic relations with other countries of the world .
    So therefore , I would suggest that the government make funds available to prospective borrowers for businesses and investments that would increase the country’s gross domestic products and possibly increase our country’s trade which would in-turn increase our foreign exchange earnings .

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.