FG made N2.8tn from taxes in 2010 – Aganga

Olusegun Aganga

The Federal Government generated N2.8tn as tax revenue in 2010, the Minister of Finance, Mr. Olusegun Aganga, has said.

Aganga said on Monday that the amount represented a 29 per cent increase over the N2.2tn generated in 2009.

He spoke at an enlargement meeting of the Federal Inland Revenue Service in Abuja.

The minister attributed the increased revenue to the various tax reforms implemented in the year under review.

Some of the reforms were: the approval of the National Tax Policy, the establishment and take-off of the Tax Appeal Tribunals to adjudicate on tax disputes arising from the administration of tax laws by the FIRS; and the approval and payment of tax refunds to taxpayers for the first time since the passage of the FIRS (Establishment) Act in 2007.

The Federal Executive Council also approved the funding and take-off of the Integrated Tax Administration System, which Aganga said would help to fully automate core tax processes and create a seamless tax administration system.

He said that the N2.83tn revenue was the second highest amount collected in the history of the FIRS.

He said, “You may recall that upon my appointment to the Ministry of Finance early last year, the tax sector was identified as a priority sector and we were determined to ensure continued support for the reform agenda in the tax system.

“As part of this commitment, the Ministry of Finance has worked very closely with the FIRS over the last year to ensure that the Service continues to effectively discharge its function as a primary revenue generating authority of the Federal Government.”

He added, “In this regard, performance has been strong; as the FIRS continued to perform impressively throughout the year, leading to tax collection figures of N2.8tn for the year ended, December 31, 2010, which compares with N2.2tn for 2009, an increase of 29 per cent.

“This is the second highest collection performance in the history of the FIRS. For this, I must specifically commend the Executive Chairman, the board, management and staff of FIRS for a job well done.”

The minister also pointed out that there was a need to deepen tax administration at all levels of government, adding that the sector was a dynamic area in which constant improvement was required in order to keep up with the ever changing face of the global economy.

To achieve this, Aganga said, “We must employ tools such as taxpayer education, increased interaction with taxpayers, collaboration with the civil society, academia and other stakeholders in the tax system.”


 Source:Punch