Coronavirus Coronavirus – The Executive Chairman, Federal Inland Revenue Service (FIRS), Muhammad Nami, recently fielded questions from some journalists in Abuja.
In the interview, the graduate of Bayero and Ahmadu Bello Universities gave insights into the challenges he has faced so far in office and the measures taken to overcome them. He also outlines plans to harness the stamp duty to bolster the nation’s economy in the midst of the coronavirus pandemic.
Q: Briefly, how would you describe your experience thus far as the helmsman at the FIRS?
Nami: I can say so far it has been both exciting and challenging. Exciting because I am practising what I have been doing for almost three decades, and here I am also interacting with some of the best brains there are in the sector.
Q: The public expects that things would change for the better at the FIRS under your watch. What can you list as your achievements in the first 100 days in office leading the service?
Nami: Well, I can say with all sense of modesty that we have achieved a lot since we came on board. Although I would have liked to leave this to posterity but a few points will suffice.
When I came on board, I found that the entire structure of the Service had keeled over. So I had the daunting task of piecing together the pieces. Now, you will agree with me that this is not an easy task considering the fact that FIRS is a large organisation with about 10,000 staff and I am new to both the environment and the staff.
Q: The Finance Act 2019 was signed into law recently and came into operation on February 1, 2020. What is in the Act for the individual taxpayer and businesses in terms of tariffs or tax palliatives?
Nami: First of all let me say that the Finance Act is an instrument that is meant to strengthen taxation system in Nigeria and that it is not yet a perfect document. Having said that, the Act contains a number of important palliatives especially for the small businesses.
One of these is the exemption of companies whose turnover is less than N25 million from payment of Company Income Tax but they must file tax returns. Also, the Act stipulates a reduced Company Income tax of 20 per cent for companies whose turnover is from N25 million to N100 million. Again, the Act provides that early payment of tax attracts a bonus of 2 per cent of tax payable for medium size companies and 1 per cent for bigger companies.
Q: COVID-19 is clubbing the global economy into a coma and a global recession is very likely on the horizon for all countries, including Nigeria. How can the FIRS help the nation out, if indeed, there is something the service can do to help Nigeria in these trying times?
Nami: Yes, you’re right. Coronavirus, or COVID-19, is currently ravaging the world economy. This is no doubt a frightening scenario for all nations and the global economy, more so for a developing economy like our own.
No doubt this is a very trying time for business owners and taxpayers generally. We feel for them, we sympathise with their situations right now, and we pray that the world overcomes this dreadful condition as soon as possible so that businesses can thrive again.
Q: You have brought up stamp duty and it is pertinent we bring up the controversy surrounding it in terms of which agency of government has more right to collect it…
Nami: Thank you very much for this question. It is not much of a controversy, really. To my mind, I think there’s a misunderstanding of the issues involved. Let me use this opportunity to set the matter straight.
We are all educated people and so we should not confuse postage stamp which traditionally belongs to NIPOST with the stamp duty. For the avoidance of doubt, postage stamp is a signage that is affixed on a letter, visa, and in some cases agreements, and it is sold by NIPOST.
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