The Federal Capital Territory Internal Revenue Service (FCT-IRS) has began plans to correct errors in remitting taxes by individuals in the F.C.T to other states.
The FCT-IRS chairman, Haruna Abdullahi, disclosed that the errors, if not well corrected, will deny the rightful states of their genuine resources.
He revealed this during a workshop for the Payroll and Personnel Information System (IPPIS) and Government Integrated Financial Management Information System (GFMIS) platforms, in Abuja.
Internally generated revenue (IGR) is a crucial aspect of state governance, especially in Nigeria, where poverty and economic inequality continue to be prevalent.
Advocates of higher IGR say only about 20 million Nigerians are paying taxes, they also say Nigeria’s tax-to-GDP ratio, six per cent, is one of the lowest in the world,
But in arriving at these figures, they fail to acknowledge the underlying issues in the country.
This is why the FCT revenue body is enforcing not only Effective tax collection but bringing into the mix, skilled personnel, technology and the appropriate legal framework.
According to them, tax clearance issue must be taken more seriously by individuals, considering the importance attached to it.
Without blocking the pitfalls, revenue collection efforts may be inefficient and ineffective, resulting in underinvestment in capacity building.
Tax experts here, say the government must comply with the provisions of tax laws to avoid lapses.
States are advised to also ensure that corruption is dealt with to prevent the leakages in tax collection.
