FIRS Digital Tax Drive, And The Endorsement Of Government.
By ABUBAKAR YUSUF.
No doubt the entire globe is moving towards digital direction, therefore all other activities both in the private and public sector will be falling short of expectations lagging behind of any sort.
Conscious of this global strides and developement,the Federal Inland Revenue Service FIRS,the sole collector of government revenues in Nigeria was proactive in it’s efforts to introduce “Digital Tax” across board,so as to build more revenue generation base of the service along with other unrelenting efforts.
World over,it is no longer news that digital activities has become the other of the day,hence the enabling body and activities need to be taxed inline with the present realities.
FIRS had long contemplated collection of “Digital Tax” in a well thriving digital economy and activities,as state actors as well as goverment endorsed the efforts towards achieving the feat,as a lot of tax defaults and legitimate tax collections has filtered away all in the name of digital transactions.
Since the world is in a digital era,the desire to mop up revenues in these transactions cannot be overemphasized, geared towards servicing other desiring areas with the proceeds of the new template.
With its leading role both in servicing federal,state and local governments interms of monthly federal allocations, economic, infrastructural developement and other exclusive activities of government,allowing a new area to lay fallow with potentials of creating more avenues for revenue generation will not augur well for the country’s developement.
Therefore,it is timely for the FIRS to put in place machinery henceforth to commence the collection of the new “Digital Tax” in Nigeria and for transactions taking place within the country, across the globe.
Coming at a time of precarious global economic recession, health challenges of COVID and other natural and artificial phenomenon,it will be a great disservice for handlers to overlook the new areas that will boost both internal and external revenues to the country.
With the new “Digital Tax” template,it will be difficult for continuos evasion of statutory payers by both indigenous and multinationals,as well as guarantee stable revenue base of the economy of Nigeria.
No doubt,the federal government did not hesitate to endorse the global idea of “Digital Tax” collections,as it will assist greatly into arguementing both it’s social, economic and political developement going forward.
With government obligations getting wider and wider by the day ,it behoves on such laudable initiatives by FIRS consented by the government to commence without further delay,as many areas of developement is already saturated with the need for attention from government.
Allowing the many years revenue loss through digital tax and transactions will be a great economic somersault, capable of reversing the need to provide, infrastructural and social safety nets and security to Nigerians and generation yet unborn, that will lead to economic prosperity.
The decision of the leadership of FIRS under Mohammed Nami to explore digital taxation will be the best thing that will happen to Nigeria as a continent, capable of reducing the debt burden,loan portfolios and discourage further request for loans to mitigate government policies and programs.
It is high time we redirect the economy of the country from analogue tax assessment to digital tax collections inline with the present realities,so as to ensure economic stability in Nigeria.
FIRS has taking the bull by the horn, stakeholders are expected to play a complimentary roles expected of them to achieve the expected and desired results to make life meaningful to many Nigerians.
Abubakar Yusuf Is A Journalist, Writes From Abuja and can be reached on email@example.com.