The Federal House of Representatives has taken a decisive step towards bolstering government revenue by urging the Federal Inland Revenue Service (FIRS) to recover outstanding taxes amounting to over N5.19 trillion owed by Ministries, Departments, and Agencies (MDAs), oil companies, and individuals.
The resolution came after the adoption of a motion on Thursday, moved by Esosa Iyawe, the member representing Oredo Federal Constituency of Edo State. In his lead debate, titled “Alleged non-remittance and under-remittance of tax by MDAs, oil companies, and other organizations,” Iyawe highlighted the significant sum owed to the government.
He recalled the FIRS’s revelation in 2021 that some companies owed N17.69 billion in taxes, with untraceable addresses. Despite this, no action was taken to recover the funds. Additionally, audit reports from 2015 to 2019 indicated that MDAs owed hundreds of billions in FIRS taxes, while over 5,000 companies and MDAs collectively owed N5.2 trillion in withholding taxes.
Iyawe emphasized that the under-remittance and non-remittance of tax deprive the Federal Government of crucial funds needed for national development. He warned that failure to address the situation urgently could further strain the country’s already struggling economy.
The motion also shed light on the plight of small-scale businesses facing burdensome multiple taxation by the FIRS, contrasting with lenient treatment towards states, local governments, multinational corporations, and other corporate entities.
Following the adoption of the motion, the House urged FIRS to initiate a robust tax recovery drive. Additionally, the Committees on Public Accounts and Finance were mandated to investigate non-compliance on tax remittance by MDAs, oil companies, and other organizations. The committees are tasked with ensuring the recovery of all debts owed to the Federal Government and reporting back within four weeks for further legislative action.
This resolution underscores the House’s commitment to enhancing government revenue and promoting fiscal responsibility for sustainable national development.