The Federal Government has announced plans to hire more tax agents in five sectors to maximise coverage and collection from Value-Added tax.
It said the plan, in line with Section 14 (3) of the VAT Act, was part of moves to reach projected earnings from VAT revenue in the coming years.
VAT is a 7.5 per cent consumption tax administered by the Federal Inland Revenue Service when goods are purchased and services are rendered, and borne by the final consumer.
According to the 2024-2026 Medium Term Economic Framework, the sectors which include telecommunications, banks and other financial institutions and companies in the construction, aviation industry will be added to tax net currently limited to Ministeries, Department and agencies and Oil and Gas Companies.
The fiscal policy also projected an average collection of N35tn in 2024, to N40tn in 2025, and N45tn in 2026, after adjusting exemptions, zero-rated items and include companies whose turnover falls below the N25m threshold.
According to the document obtained from the Budget Office of the Federation, a new law enabling the Federal Inland Revenue Service to appoint anyone as its agent to withhold, collect and remit VAT to its VAT agents would aid the new policy in ensuring smooth payments of taxes and achieving non-oil revenue targets.
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