The Presidential Committee on Tax Policy and Fiscal Reforms has announced that the Nigeria Customs Service and 62 other Ministries, Departments and Agencies (MDAs) of the Federal Government will stop directly collecting revenue.
Taiwo Oyedele, the Chairman of the Committee, had made this announcement during the Channels Television’s Sunrise Daily breakfast program on Wednesday, August 9. Mr Oyedele had also said that the Federal Inland Revenue Service, FIRS, would begin collecting revenue for the MDAs.
Oyedele, an ex-Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers, PwC, had remarked that Nigeria’s revenue collection from taxes was one of the economical in the world but the cost of collection was too steep.
“The reason for that is because we’ve got different agencies. There are 63 MDAs that were given revenue targets for the 2023 budget,” Oyedele had said.
“These agencies were not set up to collect revenue, so, they will not be able to collect the revenue efficiently.
“Therefore, the revenue collection function will be left to the FIRS. This will be advantageous for two reasons: the cost of collection and efficiency will improve, and there will be a lot more focus and as a result, the economy will benefit.
