SEC urges states to establish project firms capable of boosting IGR
FIRS, LIRS to tackle multinationals on tax irregularities
The Acting Director-General (DG) of the Securities and Exchange Commission (SEC), Mary Uduk, has implored state governments to establish companies for specific target projects to boost their Internally-Generated Revenue (IGR).
Uduk gave the advice yesterday at the ongoing Federation Account Allocation Committee (FAAC) 2020 retreat with the theme: “Efficient Federation Revenue Allocation as a Nexus for National Economic Diversification” in Lagos.She said there was urgent need for state governments to increase their IGR to enable them meet their financial obligations to the people and carry out developmental projects.
The SEC acting DG said the capital market had been associated with the development of critical legacy projects across the country, which includes development of the Kaduna Ginger Factory, Ogba Riverside Housing Estate in Edo as well as the Lekki Peninsula in Lagos.She stated that borrowing from the capital market is cheaper for states than conventional banks, which have higher interest rates and lesser repayment periods.
In another development, the Federal Inland Revenue Service (FIRS) yesterday lamented that some multinational companies in the country since 2011 refused to declare their profit and debt taxes in the country, tasking the Lagos State government on collaborative efforts to contain this irregularity.
The commission also sought the co-operation of Lagos Inland Revenue Service (LIRS) to meet up with the N8.5 trillion ‘unusual’ target by President Muhammadu Buhari to fund the budgetary requirement of the country.
Executive Chairman of FIRS, Muhammed Nami, who disclosed this yesterday during a courtesy visit to Lagos State Governor Babajide Sanwo-Olu at the Lagos House, Alausa, Ikeja, said it was time to map out strategies on how to move the Internally-Generated Revenue (IGR) and the present administration forward and channel the country towards growth and development.
Sanwo-Olu pledged continued collaboration with the FIRS to move tax administration forward in the country.The governor, who commended Buhari for approving tax exemptions on some category of businesses, goods and services, promised that the state would judiciously utilise its federal allocations.
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