MDAs, States owe N115bn in tax liabilities- RMAFC

297
1246
Tax

The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) on Wednesday alleged that Ministries, Departments and Agencies of the federal and state governments owe over N115 billion in tax liabilities.

According to a press statement signed by Mr. Ibrahim Mohammed, RMAFC’s spokesperson, the commission was able to establish the total sum of N115, 811, 884,454.01 as tax liabilities in the first phase of its recovery exercise covering the period between 2005 and 2015 spread across 30 states of the federation with the exception of Adamawa, Borno, Delta, Ebonyi, Katsina and Kebbi states.

They were given a clean bill of health as they were without any 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.

The statement added that all the states, LGCs 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 (PAYE) to the state governments thus depleting their Internally Generated Revenue (IGR) base.

Meanwhile, RMAFC also called on the Federal Government to reimburse state governments that executed its projects in their states to enhance their revenue profile.

The commission also urged states like Bauchi, Cross River, Edo, Enugu and Rivers which are yet to participate in the exercise to do so in the spirit of equity and fair play since they continue to enjoy the proceeds of tax remitted by their counterparts.

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