The Nigeria Customs Service and 62 other Ministries, Departments and Agencies (MDAs) of the Federal Government will stop direct collection of revenue, the Presidential Committee on Tax Policy and Fiscal Reforms revealed.
The Chairman revealed that going forward only the Federal Inland Revenue Services (FIRS) will collect revenue on behalf of the FG. He also noted that Nigeria has the lowest revenue collection and also the highest collection cost. Streamlining the revenue streams will help cut collection cost and enhance revenue collection efficiency.
The FG has about 63 MDAs with revenue targets and some with up to about 20% collection cost. Due to this multi tasking, the MDAs are distracted from executing their primary mandates thereby resulting to inefficiency and inability to carry out the revenue collection efficiently since they have no background and establishment for that purpose.
This will help enhance transparency and accountability of taxpayers money and also boost their confidence.
