News

July 27, 2017

FG, states owe N115bn tax liabilities— RMAFC

FG, states owe N115bn tax liabilities— RMAFC

By Gabriel Ewepu

ABUJA—THE Revenue Mobilization Allocation and Fiscal Commission, RMAFC, said, yesterday, that federal and state governments, including Ministries, Departments and Agencies, MDAs, owe over N115 billion tax liabilities.

This was contained in a statement by Head, Public Relations, RMAFC, Ibrahim Mohammed, which established that the amount uncovered was discovered during the commission’s tax liabilities recovery exercise.

According to the commission, the tax liabilities were discovered in the first phase of the exercise, which covered between 2005 and 2015.

It said Adamawa, Borno, Delta, Ebonyi, Katsina and Kebbi states were given a clean bill of health because they were without any tax liabilities.

The commission also disclosed in the statement that at the end of the exercise, with 90 per cent completion already, an additional sum of N40 billion could be realised.

The statement read in part: “The commission was able to establish the total 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 exemption of Adamawa, Borno, Delta, Ebonyi, Katsina and Kebbi States, which were given a clean bill of health as they are bereft of 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.”

It added that the states, LGCs and other agencies so far covered under the exercise have pleaded for waiver of penalty and interests totalling N24, 030,004,256.31, comprising N9, 748, 742, 417.28 as penalty and N14, 281, 261, 839.03 as interest respectively.

Meanwhile, the commission has called on Bauchi, Cross River, Edo, Enugu and Rivers states to participate in the exercise in the spirit of equity and fair play since they continue to enjoy the proceeds of tax remitted by their counterparts.