RMAFC Uncovers over N115bn Tax Liabilities Against MDAs

RMAFC Uncovers over N115bn Tax Liabilities Against MDAs

The Revenue Mobilization Allocation and Fiscal Commission, (RMAFC) has uncovered the sum of over N115 billion being tax liabilities established against Federal and States’ Ministries, Departments and Agencies, (MDAs) as well as Local Government Councils across the nation following tax liabilities recovery exercise carried out by the Commission.

According to a Press Statement signed by Mr. Ibrahim Mohammed, RMAFC’s Spokesperson, 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 between 2005 and 2015 spread across 30 States of the Federation with the exemption of Adamawa, Borno, Delta, Ebonyi, Katsina and Kebbi States which were given a clean bill of health as they are bereft of any tax liabilities. At the end of the exercise which is ninety per cent completed, an additional sum of N40 billion is expected to be realized.

The Statement adds that all the States, LGCs and other Agencies so far covered have passionately pleaded for waiver of penalty and interest totaling N24, 030,004,256.31 comprising N9, 748, 742, 417.28 as penalty and N14, 281, 261, 839.03 as interest respectively.

In the course of the exercise, it was discovered that some Federal Government Agencies domiciled in the States were not remitting Pay As You Earn (PAYE) to the state governments thus depleting their Internally Generated Revenue (IGR) base. In the same vein, RMAFC also called on the Federal Government to reimburse some of the State Governments that executed Federal Government projects in their States so as to enhance their revenue profile.

The Commission also urged states like Bauchi, Cross River, Edo, Enugu and Rivers which are 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.

Ibrahim Mohammed
Head, Public Relations