Withholding tax, VAT: Senate queries FIRS over MDAs’ unremitted N1.4bn
The Senate has queried Federal Inland Revenue Service (FIRS) over unremitted N1.4 billion Withholding Tax and Value Added Tax deducted from the Ministries Departments and Agencies (MDAs).
The query was issued by the Senate Committee on Public Account chaired by Senator Mathew Urhoghide (PDP Edo South) to the FIRS.
The query sighted by our reporter Sunday reads: “N700.2 million Withholding Tax (WHT) which were deducted from 33 government MDAs were not remitted to FIRS.
“This negates the provision of Financial Regulation 234 (III) which stipulates that officers who fail to provide for remit VAT and WHT due on vat-able supplies and services shall be sanctioned under the applicable VAT Act No. 102 of 1993 which may include fines and/or imprisonment.
“The Executive Chairman has requested that the unremitted WHT of N700.2 million be deducted at source from budgetary allocations of the affected MDAs in line with section 24 of FIRS Act of 2007 empowering the Accountant General of the Federation to make such deduction to the service.”
The second query issued by the agency also reads: “N708.5 million of Value Added Tax were deducted from 31 government MDA’s but were not remitted to FIRS.”
FIRS responds
But in a written response, the FIRS said: “The total amount of N700.2 million Withholding Tax was deducted by 33 government MDAs but had not been remitted to the FIRS.
“Efforts are still being made by the Tax collecting agency and the Debt Management Office (DMO), to advise the Accountant General of the federation to deduct at the source from budgetary allocations of the affected MDAs in line with the provisions of section 24 of FIRS Act of 2007.”
To the second query, the FIRS said: “Efforts are still made by the Service and Debt Management Office (DMO) to deduct at source from budgetary allocations of the affected MDAs in line with the provisions of section 24 of FIRS Act of 2007.”
$750m W/Bank loan
Meanwhile, the federal government has announced a plan to take another $750 million loan facility from Washington-based World Bank to shore up the economies of states and improve the people’s quality of lives.
Minister of Finance, Budget and National Planning Zainab Ahmed said this Friday during the inauguration of Federal Steering Committees of the Nigeria COVID-19 Action Recovery and Economic Stimulus.
She said: “The Federal Government is in the process of accessing a World Bank loan of $750m on behalf of the states to stimulate the local economy and support vulnerable households’ consumption.”
The APC-led federal government had borrowed substantially from various organisations, especially in the wake of the lull occasioned by the COVID-19 pandemic.
Data from the DMO shows the nation’s debt profile had risen by 155.9 per cent from around N12.12 trillion or $63.81 billion to N31.009 trillion or $85.897 billion between June 30 and March 2020.
In June, the World Bank approved $750 million for Nigeria to fix its comatose power infrastructure.
Inaugurating the committee, the minister said: “The inauguration of the committees is expedient given the nature of this emergency intervention. Nigeria as the biggest economy in Africa cannot afford to remain in recession.
“The survival of over 200 million populations is germane to all we do and we must address the concerns of the majority of our populace.”
The new credit line, if approved before year-end, makes Nigeria’s borrowing from the World Bank so far this year $1.5 billion.
Another Bretton Wood institution, the International Monetary Fund, disbursed a $3.4 billion emergency support loan to Nigeria in April, making Nigeria’s borrowing this year, if the $750 million facility is granted, $4.9 billion or N1.864 trillion.
That will catapult Africa’s economy debt portfolio to N32.873 trillion. (Ripples Nigeria)
Culled from blueprint.ng
