FIRS to review capital gains tax Act
From ISAAC ANUMIHE, Abuja
Monday, April 19,  2012

A comprehensive review of the Capital Gains Tax Act and the Stamp Duty Act will soon commence, so as to make collection more effective and easy.
The Acting Executive Chairman of the Federal Inland Revenue Service (FIRS), Alhaji Kabir Mashi, who said this in his first official interaction with the staff of the service, disclosed yesterday in Abuja, during a workshop on administration of Personal Income Tax.

Mashi said since the revenue needs of the government had been on the increase in recent times, there was need for the FIRS to strategise on how to explore the potentials that abound in revenue generation. According to him, it was necessary in order to surpass the performance target not only for the 2012 fiscal year, but to sustain it on a continuous basis.

“This workshop could not have therefore come at a more auspicious time than now when the revenue needs of the federal government are ever increasing and the FIRS is strategizing on how to explore the great potentials in revenue generation.
“The challenges of revenue shortfall being experienced at all levels of government and the pressing needs to improve revenue accruable to government are apparent. This revenue shortfall has created a gap between government’s expectations and revenue available for expenditure.

“In this regard, let me inform you that the service will shortly commence a wholesale review of the CGT Act and the SD Act to bring them up to date and make them easier to understand,” he said. He said that FIRS had consistently surpassed its target in recent times in spite of the challenges facing the FIRS in revenue collection.

From a target of N3.625 trillion in 2011, the service was able to collect N4.628 trillion as taxes. While the feat was commendable, he said that the service will strive to ensure that it surpassed the 2012 target by a wide margin.
“We must note that the national budget is substantially predicated on the ability of the FIRS as a primary revenue generating agency to meet its revenue targets.

“In doing this, we must bring to the fore key issues impacting our ability to maximise revenue potentials from various sources that have hitherto remained untapped. There is therefore the need to focus on these identified areas and bring up ideas, which will enable us optimise revenue in these areas.” Mashi explained.

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