From Uche Usim, Abuja

The Federal Inland Revenue Service (FIRS) yesterday disclosed that it generated N2.5 billion from three local airlines from 2014 till date through its automated Value Added Tax (VAT) remittance platform called VAT Collect.
The Director, Information Communications Technology (ICT) of FIRS, Kola Okunola, disclosed this in Abuja at a training session for finance journalists organised by the agency.
According to him, Aero, Dana and Medview were the only local airlines hooked on VAT Collect, stressing that they constitute the lower end of the market. “Arik Air, Air Peace, Azman and others are not yet on this electronic platform. Arik Airline controls up to 70 per cent of the market share. So, by the time Arik and others come on stream, we hope to rake in up to N10 billion annually from VAT from domestic airlines,” he explained. Okunola also revealed that plans were afoot to extend the automated VAT collection package to mega stores, the telecoms sector, oil and gas industry and other sectors of the economy.
He also revealed that the FIRS and the Corporate Affairs Commission (CAC) have jointly developed platforms that allow Nigerians in the Diaspora to register their companies online.
“You can now register a business end to end without physical contact. It is part of government’s ease of doing business package. We want to do away with physical human contact because that is where bribery comes in. We want this to stop,” he added.
The FIRS ICT Director also revealed that about 105 Ministries, Departments and Agencies (MDAs) have been brought into an electronic platform it operates in collaboration with the Office of the Accountant General of the Federation (AGF), where withholding tax and VAT are automatically deducted. “Our platform will work with government’s Integrated Financial Management Information System (GIFMIS). FIRS wants to incentivise good behaviour. 105 MDAs are for the pilot scheme. Eventually, all MDAs will fall in line. We are targeting digital tax administration and we are planning to have a contact centre that will come on stream between now till the end of the year.”

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