Tax Default: Reps urges FIRS to recover N5.19trn taxes from MDAs, oil Companies
By Tom Okpe
The House of Representatives had urged the Federal Inland Revenue Service, (FIRS) to recover taxes of over N5.19trn owed the Federal Government by Ministries, Departments and Agencies, Oil Companies and individuals.
The House, arrived at this resolution following adoption of a motion at plenary on Thursday, moved by Rep Esosa Iyawe, representing Oredo Federal Constituency of Edo State.
In his lead debate on the motion titled: ‘Alleged non-remittance and under-remittance of tax by Ministries, Departments and Agencies of Government, Oil Companies and other organisations,’ the lawmaker recalled that in 2021, the FIRS revealed that N17. 69bn was owed in taxes by some companies, whose addresses were not traced till date.
According to Esosa, “No action was taken to locate or recover the funds.
“Audit reports from 2015 to 2019 revealed that Government Agencies, owed hundreds of billions in FIRS taxes comprising, underpayments and under recoveries and over 5,000 companies and MDAs of the Federal Government owing N5.2trn in withholding taxes.”
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Rep Esosa further argued that under-remittance and non-remittance of taxes deprived the Federal Government of much needed funds to drive its policies for National development, stressing that if the situation is not urgently addressed, the effect could be crippling on the country’s already dwindling economy.
He maintained that small-scale businesses in Nigeria are frustrated by multiple taxation by the FIRS while, “States and Local Government Authorities, multinational companies and other corporate organisations are getting kid-glove treatment.”
Following adoption of the motion, the House urged FIRS to embark on tax recovery drive while, mandating the Committees on Public Accounts and Finance to investigate the non-compliance on tax remittance by MDAs of Government, Oil Companies and other organisations.
“This is to ensure, all debts in taxes owed the Federal Government are duly recovered, urging the concerned authorities to report back within four weeks, for further actions.”
