Reps urge FIRS to recover taxes owed government by MDAs

House of Representatives

The House of Representatives has urged the Federal Inland Revenue Service (FIRS) to recover taxes owed the Federal Government by government’s Ministries, Departments and Agencies (MDAs).

This followed the adoption of a motion by Rep. Esosa Iyawe (LP-Edo) during plenary in Abuja on Thursday.

The motion titled: “Alleged Non-Remittance and Under-Remittance of Tax by MDAs, Oil Companies and other organisations.”

Iyawe said that in 2021, FIRS revealed that the sum of N17.690 billion was owed the federal government in tax by some undisclosed companies, adding that no action was taken to identify the firms or recover the funds.

He said that audit reports from 2015 to 2019 revealed that government agencies owing hundreds of billions as taxes as well, saying these comprised of underpayments and under recovered taxes from over 500 MDAs.

He said if the situation was not addressed, the effects could be crippling the country’s already dwindling economy.

He said that while small-scale businesses in Nigeria were over burdened by FIRS, states and local government authorities on multiple taxation, multinational companies and other corporate organisations were let off the hook.

Adopting the motion, the House mandated its Committees on Public Accounts and Finance to investigate non-compliance on tax remittance by MDAs.

The committee is to report back within four weeks for further legislative action.