FIRS plans collection of road tax from informal sector

The Federal Inland Revenue Service has hinted of plans by the agency to start collecting road infrastructure tax in Nigeria to make the informal sector contribute to building a modern society.

Executive Chairman of the FIRS, Muhammad Nami, said the agency had sent in a proposal to this effect to the Federal Government.

Those in the informal sector are commercial bus drivers, artisans such as traders, local builders, dressmakers, hairdressers and vulcanisers among others in the low socio-economic stratum.

In a statement signed by Johannes Wojuola, media aide to the FIRS chairman, Nami stated this on Thursday while receiving a delegation of the Nigeria Union of Journalists (NUJ) led by Chris Isiguzo, the National President, in his office, in Abuja.

According to the statement, Nami said the proposed road infrastructure tax to be administered by FIRS would provide the government with adequate funding for road construction, rehabilitation, and maintenance.

The statement added that the scheme would also provide the needed security for roads in the country.

“The only way to make the informal sector contribute to building a modern society is by making them pay when they use the roads,” Nami said.

“That is why we are proposing that government should consider introducing Road Infrastructure Tax in Nigeria.

“In many jurisdictions, road users pay for the use of road infrastructure as such it shouldn’t be seen as an additional burden on our citizens because it has the potential of making life better for all of us.”

Nami stated also said the economy heavily relied on non-oil revenues to discharge its statutory responsibility of paying salaries and providing social amenities to the citizenry.

“Without the tax that you pay, governments at all levels would not be able to fulfil their mandate to the electorates. Tax money also helps to ensure the roads you travel are safe and always in good condition,” he added.

Nami also stated that despite sharp practices by some companies who were in the habit of evading taxes, by shifting their capital and profits to tax havens, as well as low revenue from Petroleum Profit Tax, due to the shortfall in crude oil production among other factors, the FIRS has been putting forward critical reforms that have been yielding positive impact on the Service’s operations.