FIRS introduces centralised tax remittance system for states

The Federal Inland Revenue Service (FIRS) says it has simplified tax remittance for the 36 states with the introduction of a central payment system.

The Executive Chairman of FIRS, Dr Zacch Adedeji, stated this at a workshop on enhancing tax compliance and revenue generation organised by the FIRS for state accountant generals in Abuja on Thursday. 

Adedeji said, “The federal government has made efforts to simplify the tax remittance process, particularly through the centralised payment system where accountant generals handle payments on behalf of government agencies. This has been instrumental in ensuring swift remittance of taxes such as VAT, WHT and Stamp Duties. 

“We have also reduced the WHT rates to focus on taxing profits rather than revenue, a move that aims to ease the burden on businesses and citizens. While this may reduce the immediate tax collection, we believe that with enhanced compliance and collaboration, we can expand the tax base and make up the difference,” he said.

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Adedeji added, “Accountant-generals are responsible for ensuring that VAT is charged and remitted, and Stamp Duties are paid on contracts, and that Withholding Tax (WHT) elements in contracts are properly withheld and remitted.”