FG, States Owe N115bn Tax Liabilities— RMAFC

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The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says it has uncovered more than N115 billion tax liabilities established against Federal and States’ Ministries, Departments and Agencies (MDAs), and Local Government Councils.

The Head, Public Relations, Mr Ibrahim Mohammed said this in a statement on Wednesday in Abuja.

Mohammed said that the discovery was made following tax liabilities recovery exercise carried out by the commission.

He said the commission was able to establish the said amount as tax liabilities in the first phase of the exercise covering the period between 2005 and 2015 across 30 states of the federation.

The spokesman said Adamawa, Borno, Delta, Ebonyi, Katsina and Kebbi states were excluded from the exercise because they had no tax liabilities.

“At the end of the exercise which is 90 per cent completed, an additional sum of N40 billion is expected to be realised.
“All the States, Local Government Councils and other agencies so far covered, have passionately pleaded for waiver of penalty and interest totaling N24 billion comprising N9.7 billion as penalty and N14.2 billion as interest respectively.’’

Mohammed said 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 (PAYE) to the state governments thus depleting their Internally Generated Revenue (IGR) base.

He, however, called on the Federal Government to reimburse some of the state governments that executed Federal Government projects in their states to enhance their revenue profile.

“States like Bauchi, Cross River, Edo, Enugu and Rivers which are yet to participate in the exercise should do so in the spirit of equity and fair play since they enjoy the proceeds of tax remitted by their counterparts.’’

The RMAFC was established to monitor accruals into the federation account and the disbursement of revenue from it. (NAN)

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