The Federal Inland
Revenue Service (FIRS) yesterday said that the project to computerise
the nation’s tax system is billed to take off with the full
implementation of the Unique Taxpayer Identification Number (UTIN)
system in April.
The computerisation
system, which the service has been championing in conjunction with the
Joint Tax Board (JTB) in the last four years, is expected to become
available for taxpayers’ registration at pilot locations in November,
while nationwide operations are billed for April 2012.
Indications are
that the pilot phase of the system would become operational in eight
locations in the six geopolitical zones of the country, including
Lagos, Rivers, Delta, Adamawa, as well as the Federal Capital Territory
(FCT), Abuja.
Indications towards
the planned take off of the new tax system is coming just as the JTB
has renewed the call on the National Assembly to accelerate the process
towards the passage of Personal Income Tax (PIT) Bill as soon as they
reconvene from recess, to facilitate the realisation of the objectives
of the proposed law.
The PIT Amendment
Bill, which has been pending before the National Assembly for the last
three years, finally sailed through legislative deliberations before
the close of the 6th Legislative Assembly.
The call for the
passage of the law, which was amongst eight-point decisions at the
124th Meeting of the Tax Administrators in Abuja, would give some
relief to taxpayers, as it seeks to reduce the current rate from 20 per
cent to 17.5, even as government is convinced that the amendment would
also improve the tax compliance of taxpayers generally.
On the
administration of the existing PITA provisions, the Board urged all
federal, states and local government Ministries, Departments and
Agencies (MDAs) to ensure that the provisions were strictly adhered to
by deducting adequately all Pay-As-You-Earn (PAYE) taxes of their
employees.
Approved taxes
Ifueko
Omoigui-Okauru, FIRS chairman, in a communiqué after the meeting, said
the members also resolved to sustain their ongoing fight against
multiple taxation by increased public awareness campaigns at all levels
of government, including the publication of the list of approved taxes
and levies on a sustainable basis.
Similarly,
discussions on the proposed Enhanced New Drivers Licence scheme ended
with a resolution that adequate awareness about its take off on April
18 this year, even as the Board commended the initiative of the
Students’ Tax Advisory Initiative (STAI), while urging Nigerian youth
to take active interest in taxation as a fiscal policy option for
building a better Nigeria.
With these
resolutions, some of the member states may have shifted position on
their earlier subtle opposition to the proposed amendment of the Bill
in view of what they believe were its likely negative effects on their
Internally Generated Revenue (IGR) profile.
Some governors,
particularly those with High Internally Generated Revenue (IGR)
profiles, had begun moves to ensure that the proposed amendment to the
PITA was considered simultaneously with the proposed amendment of the
Value Added Tax (VAT) law, which they believed would offset some of the
revenue losses their states might suffer as a result of the amendment
of the former Bill.
The PIT is imposed on the income of all Nigerian employees or residents who derive income in Nigeria and outside Nigeria.
