In a significant development, the Federal Government has revealed that tax revenue has emerged as the highest income source for the federation. This acknowledgment came from the Accountant-General of the Federation, Oluwatoyin Madein, during the 26th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja.
Madein’s statement underscores the increasing importance of tax revenue in sustaining the nation’s finances. She highlighted that members of the Federation Accounts Allocation Committee (FAAC) eagerly anticipate the figures from the Federal Inland Revenue Service (FIRS) every month, as these numbers play a crucial role in determining the funds available for distribution to the three tiers of government.
The article also revealed that the FIRS exceeded its 2023 revenue target by a staggering N816 billion, collecting a total of N12.37 trillion, surpassing the N11.56 trillion target. This remarkable feat demonstrates the agency’s efficiency in tax collection and reinforces the government’s reliance on tax revenue as a dependable source of income.
Madein urged tax practitioners to redouble their efforts in collecting taxes, emphasizing that increased tax revenue is vital for the government to provide infrastructure and other essential amenities to the citizens. She stressed the transformative power of taxation in creating a more prosperous, equitable, and sustainable society.
However, the article also highlighted concerns raised by the President and Chairman of Council of the CITN, Samuel Agbeluyi. He pointed out that the withdrawal of subsidies on fuel and electricity has reduced the purchasing power of the masses. Additionally, Agbeluyi cautioned that raising electricity tariffs for a selected band after the fuel subsidy removal could further diminish the purchasing power of Nigerians. He urged the government to consider the impact of such actions on the masses.
Agbeluyi also commended President Bola Tinubu’s decision to ask the Central Bank of Nigeria (CBN) to slow down on the recently approved cybersecurity levy. The CITN president affirmed the institute’s commitment to advising the government on policies, taking into account their effects on citizens.
Overall, the article underscores the pivotal role of tax revenue in Nigeria’s economic landscape and the government’s efforts to enhance tax collection and compliance. It also highlights the need for a balanced approach that considers the impact of policies on the purchasing power and well-being of the masses. As the nation strives for sustainable economic growth and development, a robust tax culture supported by judicious use of tax revenue emerges as a critical factor in nation-building efforts.
Reference
Tax now highest revenue source to federation – FG published in punch by Okechukwu Nnodim