The Federal Inland Revenue Service (FIRS) will commence implementation of automated Value Added Tax (VAT) and Withholding Tax deductions for the aviation Industry in the third quarter of the year. This was contained in a statement signed by Mr Emmanuel Obeta, the Director of Communications and Liaison Department of FIRS in Abuja.
The statement quoted the Acting Executive Chairman of FIRS, Alhaji Kabiru Mashi, as saying this at a one-day sensitisation workshop for FIRS field officers, collection agents and banks. It also quoted the FIRS boss as saying that the pilot automation process in the aviation industry would later cover other sectors such as telecommunication, power and financial institutions. Mashi, who was represented by Mr Onyekachi Ihedioha, the Coordinating Director, Direct Report Group (DRG), said there would be an increase in the number of payment channels to ensure the effectiveness of the scheme.
Also, the Integrated Tax Administration System (ITAS) will be implemented as part of steps being taken by FIRS to ensure increased tax revenue collection for government. Mashi said that FIRS was also collaborating with commercial banks to make the Taxpayer Identification Number (TIN) mandatory for opening individual and corporate accounts. “We appreciate the level of cooperation in the implementation of the Taxpayers Identification Number (TIN) system.
“ We have achieved some significant mileage with the introduction of TIN and we hope the banks will fully adopt the “No TIN No Account” option as we go on,’’ he said. The acting chairman said that while part of the ITAS project focused on taxpayers registration using TIN, the filing and registration and returns processes as well as payment and processing were being addressed by the collection automation project. He said that these mechanisms were being put in place for adequate analysis and monitoring of tax remittances.
“The success or otherwise of some of the above initiatives depend on the level of cooperation of agencies like the Nigeria Customs Service, Central Bank of Nigeria, Nigeria Civil Aviation Authority, Office of the Accountant General of the Federation. I am sure you are all are aware of the introduction of the Electronic Form M by the Nigeria Customs Service and the Central Bank of Nigeria. We have also keyed into this arrangement in such a manner that transactions involving the use of e-form M cannot be processed without a valid TIN. Equally important for the success of this idea is the level of cooperation of banks, we therefore solicit for your assistance in the implementation of this and other initiatives,’’ he said
