The Federal Inland Revenue Service (FIRS) from January 2022, will be the main collector of Value Added Tax (VAT) and other taxes accruing to the federation account if passed into law, Checkout Magazine has learnt.
This will be made possible if the Finance Bill 2021 transmitted by President Muhammadu Buhari to the National Assembly for consideration is approved.
The Executive Bill seeking such power for the FIRS was sponsored by Senate Leader Yahaya Abudullahi.
According to the Finance Bill 2021, which scaled second reading at the Red Chamber yesterday, the federal government plans to make “FIRS the primary agency of the Federal Government responsible for the administration, assessment, collection, accounting and enforcement of taxes and levies due to the federation, the federal government and any of its agencies except otherwise authorized by the Finance minister.”
However, the Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC) Mr. Taiwo Oyedele, opined that the clause has a wider target.
“I don’t think VAT is the focus of the amendment, it’s targeted at other MDAs trying to collect various taxes, perhaps the likes of NIPOST trying to collect stamp duties,” Oyedele told reporters.
