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Buhari’s Administration Rakes N11.5tn Tax From Companies – Report

 

Finance Bill: List of 172 Compnies That May Lose N2.4tn Tax Waivers

Findings have shown that the Federal Government under the administration of President Muhammadu Buhari raked in N11.5tn from taxes paid by business organizations.

Data published by the National Bureau of Statistics between 2015 and 2022 showed Company Income Tax (CIT) collected by the Federal Inland Revenue Service stood at N1.3tn when the President assumed office in 2015 and dipped by 26 percent to N1tn in 2016 when the country’s economy went into recession due to a significant drop in oil prices.

As the government generated a total of N5.3tn between 2017 and 2020, it continued to rise during the period.

However, in 2021, the Federal Government received N1.6 trillion from corporation taxes, and in the first three quarters of 2022, it received a record N2 trillion.

According to the data, the highest contributors to the CIT were the manufacturing, Information Communication Technology, and financial services sectors.

Tax from firms in the information and communication sector rose by 158.51 percent from N51.05bn in the third quarter of 2021 to N131.97bn in the corresponding period in 2022.

In the same vein, manufacturers paid the most taxes during the period in review, as the Federal Government increased the number of taxes collectable by the Federal Inland Revenue Services from 39 to 61 items.

Speaking in an interview with PUNCH, the President of the Lagos Chamber of Commerce and Industry, Michael Olawale-Cole, faulted the government’s inability to widen the tax bracket and capture more taxpayers.

He pointed out that the productive sector is being overburdened by taxes which is a major issue.

Olawale-Cole advised the government to devise electronic means to capture those not paying tax instead of resorting to aggressive taxation whenever it encounters a revenue shortfall.

He said: “So, the government needs money, but what we are saying is that the government is just putting pressure on the same people as opposed to developing to bring more people into the tax bracket. That is the major issue. There are a lot of people who are not paying taxes but are making money in this country.

“So, the government should find a way of catching them. They are improving because now government banks are linked with tax authorities. So, if income comes into your account, they have a way of knowing. They should do more of that. “This could be done through electronic means.

“We are saying they should not increase the tax rates all the time for the same people who are paying when there are more people who are not paying because if you tax them to a point, they will not be able to pay.”

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