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Senate To Investigate Deposit Banks Over Remittance Of Tax Revenues

A file photograph of the Senate President, Ahmad Lawan, throughout plenary on the higher chamber of the Nationwide Meeting in Abuja.

 

The Senate has mandated its Committees on Banking, Insurance coverage and Monetary Establishments, to research Withholding Tax revenues on each financial institution deposits and dividends.

It additionally urged banks and Central Safety and Clearing System (CSCS) to work with varied authorities businesses and stakeholders to make sure that assortment and remittance of Withholding Tax to the Federal Authorities are carried out utilizing fashionable automated tax options and knowledge expertise options.

In keeping with a press release signed by the Particular Assistant (Press) to President of the Senate, Ezrel Tabiowo, these have been among the resolutions reached on Tuesday by the higher chamber throughout plenary, and after consideration of a movement sponsored by Uche Ekwunife (PDP – Anambra Central).

Ekwunife, in her presentation, disclosed that “Central Security and Clearing System (CSCS) and Banks in Nigeria do not remit Withholding Tax on Deposit and Dividend to State Governments as and when due.”

In keeping with the lawmaker, most State Authorities are unable to pay salaries and meet their monetary obligations because of poor and dwindling income.

She additionally raised considerations that “billions of Naira are being held by banks in Nigeria either in form of under remittance or non-remittance of Withholding Tax due to government.”

“The need for states to increase their Internally Generated Revenue has become imperative given the dwindling revenue from the federation account which has left various State Governments in Nigeria with the task of formulating strategies to improve the revenue base of their states,” Ekwunife added.

The lawmaker additional expressed concern that one of many main sources of income for state governments is the Withholding Tax on financial institution deposits and dividends which has been troublesome for states to trace.

She acknowledged that “the current practice is that both the banks and Central Security Clearing System remit to state governments any amount they desire as it is difficult for the states to reconcile what amounts should be credited to them.”

Ekwunife, nonetheless, opined that the leakages with respect to remittance of Withholding Tax may be addressed utilizing fashionable tax options and knowledge expertise.

In the meantime, the Senate additionally urged the Nigeria Police Pressure, the Federal Highway Security Fee and Automobile Inspection Officers to instantly clamp down on truck and lorries plying federal highways with out the minimal prescribed ranges of lighting or highway security necessities.

The decision was reached sequel to the consideration of a movement sponsored by Senator Teslim Folarin (APC – Oyo Central).

In keeping with the lawmaker, in 2017, there have been 779 recorded Highway Visitors Collisions involving trailers and tankers, which resulted in 737 fatalities and a couple of,622 severe accidents.

He added, “In 2018, over one thousand lives and an estimated N39 billion were lost directly due to accidents involving trucks and articulated lorries.”

The Chamber, accordingly, mandated its Committee on Federal Character and Inter-Governmental Affairs to research the extent of compliance to highway security legislations amongst haulage operators, homeowners and drivers, in addition to the implementation of the suggestions from the 2018 haulage Operators Stakeholders’ summit.

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