VAT row: FIRS workers fear cut in salaries, bonuses

The dispute between the Federal Inland Revenue Service and some states over the collection of Value Added Tax seems to be taking a new turn by the day as two more states, Ogun and Akwa Ibom, say they are ready to enact laws that will enable them to collect the tax in their states.

This is as some employees of the FIRS are currently in panic mode over the recent moves by states to begin collection of Value Added Tax.

Three members of the FIRS workers’ union told one of our correspondents that stripping the FIRS of the power to collect VAT could reduce the commission the agency would have received by as much as N96bn.

The FIRS had stated in a document submitted to the National Assembly that it projected it would be able to collect N2.44tn from both import and non-import VAT in 2022.

The FIRS, which takes four per cent of the amount collected as VAT as its commission, projected it would receive N96bn in 2022.

Should the states begin collecting VAT, the FIRS would lose this huge sum, a top source within the tax body told one of our correspondents.

The source said, “Our highest source of revenue is Petroleum Tax and VAT. Others include Stamp Duty, Company Tax and a few others. VAT is number two for us and we are paid bonuses based on performance.


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