RMAFC recovers N115.8 billion tax liabilities from govt. agencies in 10 years

A picture used to illustrate the story
A picture used to illustrate the story

The Revenue Mobilization Allocation and Fiscal Commission, RMAFC said it recovered over N115.8 billion tax liabilities from federal and state governments’ ministries, departments and agencies, MDAs, as well as local government councils in ten years.

The commission said the tax liabilities were recoveries made in the first phase of its exercise carried out between 2005 and 2015 across 30 states of the federation.

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

The spokesperson of the Commission, Ibrahim Mohammed, said 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.

The Commission, said the exercise, which is about 90 per cent completed, is expected to realise additional N40 billion.

“All the states, Local Government Councils and other agencies so far covered have passionately pleaded for waiver of penalty and interest totaling N24,030,004,256.31. This comprises N9,748,742, 417.28 as penalty and N14,281,261,839.03 as interest respectively,” Mr. Mohammed said.

He said during the exercise, the Commission discovered that some Federal Government agencies domiciled in the states were not remitting Pay As You Earn, PAYE, to the various state governments, thus depleting their Internally Generated Revenue, IGR, base.

The Commission called on the Federal Government to reimburse state governments that executed its projects in their states to enhance their revenue profile.

Also, the Commission urged states like Bauchi, Cross River, Edo, Enugu and Rivers 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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