Tax: FG rakes N131bn from 6 banks — Daily Times Nigeria Press "Enter" to skip to content

Tax: FG rakes N131bn from 6 banks

The Federal Government through its revenue agencies generated not less than N131billion as tax income from six commercial banks operating in the country in 2017, findings by The Daily Times has revealed.

The six commercial banks in 2016 paid government agencies N124 billion, as government at both the federal and state level continued brace up policies that will enforce tax payment compliance across the country.

The banks audited financial statements for December 31, 2017, revealed that Stanbic IBTC Holdings Plc and United Bank for Africa Plc (UBA) income expenses significantly increased in 2017 while GuarantyTrust Bank Plc and Zenith Bank Plc reported drop in income tax paid to government revenue agencies.

For the period under review, Stanbic IBTC Holdings reported 47.1 per cent increase in income tax to N12.79 billion in 2017 from N8.69 billion reported in 2016.

UBA’s Income tax expenses grew by 45 per cent to N26.7 billion in 2017 as against N18.4 billion in 2016 while Ecobank Transnational Incorporated (ETI) reported 2.2 per cent increase in Income tax expense from N18.2 billion in 2016 to N18.6 billion in 2017.

According to investigation, UBA income tax expenses in Nigeria last year was around N12.7 billion, about 47.5 per cent of the total N26.7 billion paid by the lender in 2017.

The Nigerian multinational financial institution paid N14 billion as income tax expenses in the rest of Africa.

However, GTBank’s income tax expenses dropped by 9.4 per cent to N29.8 billion from N32.86 billion reported in 2016 over drop in company income tax.

GTBank’s company income tax in 2017 thus dropped by 33.4 per cent to N13 billion from N19.88 billion reported in 2016 while Education Tax also dropped by 29.3 per cent to N957 million as against N1.35 billion in 2016.

In addition, GTBank paid N1.86 billion on National Information Technology Development Agency (NITDA) in 2017, 20.9 per cent from N1.54 billion in 2016.

The NITDA Act 2007 stipulates that specified companies are to contribute one per cent of their Profit Before Tax (PBT) to the Federal Inland Revenue Service (FIRS).

The contributions are meant to create Information Technology centres across the country and create jobs.

Also, Zenith income tax dipped by 5.8 per cent to N25.5 billion from N27.1 billion while Access Bank reported four per cent drop in income tax expenses to N18.08 billion in 2017 from N18.9 billion in 2016.

The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, had disclosed that the government revenue agency generated a total sum of N4 trillion as tax income in 2017, an increase of 21.7 per cent from N3.3 trillion generated in 2016.

He noted that agency last year enjoyed support of Lagos State government with other government Ministries, Departments and Agencies (MDAs) in tax collection last year as government renewed interest in generating revenue from non-oil sector over dwindling global oil prices.

“This was an increase of about 21.7 per cent over 2016 figure. In 2016, we were able to generate N3.3 trillion,” Fowler said.

He noted that for the country to move forward, key stakeholders in tax collection must be on the board.

He explained that performance of the revenue service agency determines the amount of revenue the three tiers of government share on monthly basis.

Be First to Comment

Leave a Reply

shares