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MDAs Owe N115bn in Tax Liabilities – RMAFC

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  • MDAs Owe N115bn in Tax Liabilities

Ministries, Departments and Agencies of the federal and state governments owe over N115bn in tax liabilities, the Revenue Mobilisation Allocation and Fiscal Commission has said.

The RMAFC said this in a statement made available to our correspondent in Abuja on Wednesday by its Head of Public Relations, Mr. Ibrahim Mohammed.

Mohammed said the commission uncovered the amount being in tax liabilities established against federal and states’ MDAs as well as local government councils across the country following a tax liability recovery exercise carried out by it.

He said, “The commission was able to establish the sum of N115,811,884,454.01 as tax liabilities in the first phase of the exercise covering the period between 2005 and 2015 spread across 30 states of the federation with the exemption of Adamawa, Borno, Delta, Ebonyi, Katsina and Kebbi states, which were given a clean bill of health as they had no tax liabilities.

“At the end of the exercise, which is 90 per cent completed, an additional sum of N40bn is expected to be realised.”

Mohammed added, “All the states, LGs and other agencies so far covered have passionately pleaded for waiver of penalty and interest totalling N24,030,004,256.31, comprising N9,748,742,417.28 as penalty and N14,281,261,839.03 as interest, respectively.

“In the course of the exercise, it was discovered that some Federal Government agencies domiciled in the states were not remitting Pay as You Earn assessment to the state governments, thus depleting their Internally Generated Revenue base.”

The RMAFC called on the Federal Government to reimburse some of the state governments that executed projects for it in their states so as to enhance their revenue profile.

The commission also urged states like Bauchi, Cross River, Edo, Enugu and Rivers, which had yet to be verified, to subject themselves to the exercise in the spirit of equity and fair play since they continued to enjoy the proceeds of tax remitted by their counterparts.

With dwindling government revenues resulting from low patronage of the nation’s foreign exchange earner, crude oil, as well as the diminishing price of the commodity, the government has increased strategies to earn more from taxes.

Tax evasion is considered to be high and widespread among individuals and corporate entities in the country, with Acting President Yemi Osinbajo recently signing an Executive Order granting amnesty to tax evaders.

The Executive Order established the Voluntary Assets and Income Declaration Scheme that encourages tax defaulters to voluntarily show up and pay up without being prosecuted.

The amnesty, which runs from July 1 to March 31, 2018, hopes to bring in four million defaulters into the tax database to boost government revenues.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Economy

Food Inflation Hits Record High of 19.56 Percent in December 2020

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Inflation

Food Inflation Hits Record High of 19.56 Percent in December 2020

Food Index, which measures prices of food items, grew by 19.56 percent in the month of December 2020 amid herdsmen attacks and flooding.

In the latest report from the National Bureau of Statistics (NBS), increases were recorded on Bread and cereals, Potatoes, Yam and other
tubers, Meat, Fruits, Vegetable, Fish and Oils and fats.

On month on monthly basis, the food sub-index rose by 2.05 percent in December 2020, 0.01 percent from 2.04 percent recorded in November 2020.

The average annual rate of change of the Food sub-index for the twelve-month period ending December 2020 over the previous twelve-month average was 16.17 percent, 0.42 percent points from the average annual rate of change recorded in November 2020 (15.75) percent” the report stated.

Headline inflation number increased by 15.75 percent in the month of December 2020, up from 14.89 percent.

The report noted that increases were recorded in all COICOP divisions that yielded the Headline index.

On a month-on-month basis, “the urban index rose by 1.65 percent in December 2020, same as the rate recorded in November 2020, while the rural index also rose by 1.58 percent in December 2020, up by 0.02 percent above the rate that was recorded in November 2020 (1.56 percent).

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Economy

Nigeria’s Inflation Rate Rises to 15.75 Percent in December

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Nigeria’s Inflation Rate Rises to 15.75 Percent in December

Inflation rate in Africa’s largest economy, Nigeria, rose at the fastest pace in several months in the last month of 2020, according to the latest report from the National Bureau of Statistics (NBS).

Consumer Price Index (CPI), which measures inflation rate, increased by 15.75 percent year-on-year in December 2020, representing a 0.86 percent increment from the 14.89 percent attained in November.

On a monthly basis, headline inflation rose by 1.61 percent in the month of December, representing 0.01 percent increase from the 1,60 percent posted in the month of November.

Food gauge that measures prices of items in Africa’s largest economy increased by 19.56 percent in December from 18.30 percent in November.

NBS attributed the increase to the surge in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils and fats.

On a monthly basis, the food sub-index grew by 2.05 percent in December 2020, an increase of 0.01 percent points from 2.04 percent recorded in November 2020.

The more stable annual rate showed Food sub-index over the last 12 months increased by 0.42 percent points from 15.75 percent in November to 16.17 percent in December.

Herdsmen attacks, the rising cost of fuel, flooding and the wide exchange rate are some of the key factors impacting the cost of food items in Nigeria, especially in December when demands were the highest.

Still lack of enough fiscal buffer to cushion the effect of COVID-19 and ease forex scarcity also drag on raw materials necessary for the production of some import-dependent items.

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Economy

Joe Biden on Thursday Unveiled $1.9 Trillion Stimulus Package

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Joe Biden on Thursday Unveiled $1.9 Trillion Stimulus Package

President-elect, Joe Biden, on Thursday revealed more details of his $1.9 trillion coronavirus rescue package for households and businesses impacted by the COVID-19 pandemic in the United States.

In the proposal called the American Rescue Plan, several stimulus measures were detailed in the hope it would mitigate the impact of COVID-19 on families and businesses.

Below are the highlights of the Rescue Plan

  • Direct payments of $1,400 to most Americans, bringing the total relief to $2,000, including December’s $600 payments
  • Increasing the federal, per-week unemployment benefit to $400 and extending it through the end of September
  • Increasing the federal minimum wage to $15 per hour
  • Extending the eviction and foreclosure moratoriums until the end of September
  • $350 billion in state and local government aid
  • $170 billion for K-12 schools and institutions of higher education
  • $50 billion toward Covid-19 testing
  • $20 billion toward a national vaccine program in partnership with states, localities and tribes
  • Making the Child Tax Credit fully refundable for the year and increasing the credit to $3,000 per child ($3,600 for a child under age 6).

Speaking on Thursday, Joe Biden, said “Tonight, I lay out my first step, the American Rescue Plan that will tackle the pandemic and get direct financial assistance and relief to Americans who need it the most.

Next month, in my first appearance before a joint session of Congress I will lay out my ‘build back better’ recovery plan,” Biden said. “It will make historic investments in infrastructure, manufacturing, innovation, and research and development in clean energy.”

Our ‘rescue and recovery’ plan is a path forward with both serious of purpose and a clear plan, with transparency and accountability, with a call for unity that is equally necessary,” he said.

It’s not hard to see that we’re in the middle of a once-in-several-generations economic crisis with a once-in-several-generations public health crisis. A crisis of deep human suffering is in plain sight and there’s no time to waste,” Biden said. “We have to act, and we have to act now.”

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