Govt to improve tax collection by 20 percent

Forensic auditing for 81 revenue generating agencies
The fund the deficit in the 2016 budget, the federal government plans to increase tax collection by 20 per cent, Minister of Budget and Planning Udoma Udo Udoma said yesterday.
Stressing that the government does not want to increase the suffering of Nigerians, he said that the government will increase corporate tax and Value Added Tax (VAT) collections.
He spoke with State House reporters after the National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo.
The Minister was accompanied by Governors Akinwunmi Ambode (Lagos) Willy Obiano (Anambra) and Badaru Abubakar (Jigawa).
Ambode said Edo State Governor Adams Oshiomhole gave an update to the Council on NEC’s Ad-Hoc Committee on the management of the Excess Crude Account and payment into the Federation Account.
According to him, the Ad-hoc Committee submitted a memo for approval on its findings which included 81 government revenue generating agencies identified for forensic auditing while 18 core revenue generating agencies like the NNPC to be audited by KPMG, an international audit firm.
He said that other revenue generating agencies would also be forensically audited by SIAO, a local auditing firm. Council, he said, approved engaging of the forensic auditors.
Udoma said: “We expect about 20% increase in VAT collection, which is conservative in terms of our revenue projections. We are expecting much more than that. Occasionally we try to be conservative.
“With reference to the budget, one thing we are determined not to do is to cut any of those capital projects, because we need them to stimulate the economy. We are going to work with the National Assembly, to see how we can get savings.
“One of the areas we are looking at is our cash call elements. The minister of state for petroleum (Ibe Kachikwu) is looking at how we can cut our cash call elements which is about N1trillion by innovative financing.
“So he is discussing with some oil companies and looking for some innovative financing which might pick up some of the financing so that we reduce our financial output and contribution by the federal government.
“That will be a major saving which can be used to plug the gap particularly with falling oil prices. In addition some of the capital projects, the various ministers for infrastructure are looking at how we can get private sector funding for some of them.
“For instance the airport can be concessioned. We are looking at public buy back for some of the roads, looking at tolls. We have to be imaginative.
“But it is important not to touch the capital portion because that is important to revitalise the economy to get our people back to work, to get growth moving again so that we can get the 4% growth.” He added
Udo- Udoma had informed the Council that the state of economy was largely affected by the decline in oil price between June 2014 and December 2015 which has increased domestic vulnerabilities.
According to him, 2016 budget objectives among others included to deliver inclusive growth to Nigerians, create significant number of jobs to reduce unemployment and underemployment, building an economy that is less vulnerable to oil price shocks by creating resistant divested income base and creating efficient Public Financial Management System.
Governor Badaru said the Accountant-General of the Federation reported to the Council that the balance in the Excess Crude Account as at 31st December, 2015 was $2.257 billion.
On the update of states that have received bailout funds and those outstanding, he said CBN Governor Godwin Emefiele gave an update to the Council that 23 States have benefited from the N10 billion ECA-backed soft loan, stressing that some states have not indicated interest, while some are still holding discussions with their banks.
He said 28 states have benefited from the Presidential bailout.
Governor Obiano said that the Council also received report on government agencies collecting revenue in foreign currency but remitting in naira.
According to him, the Permanent Secretary in the Ministry of Finance reported to Council that apart from NNPC, NIMASA and the Ports Authority, other agencies involved in revenue generating are FIRS, Shippers Council, Airport Authority and Nigerian Immigration Service.
“He reported that the introduction of TSA has now resolved the problem as all accounts are under the control of the CBN. The Vice President reiterated Federal Government policy that NNPC and other agencies must present budget for approval before spending in line with TSA.” He added