By Isa Amodu, Abuja
The Federal Inland Revenue Service (FIRS) has warned against tax evasion under the new regime of 7.5 per cent Value Added Tax, (VAT) which implementation begins February 1, 2020.
Hence, the Executive Chairman, FIRS, Muhammad Nami has therefore, urged all business owners to ensure that they register with the service and pay their dues as at when due.
Nami while speaking during a ‘Tuesday Live’ program on the Nigerian Television Authority (NTA), Nami added that, the VAT increase which is meant to help the government achieve its revenue projections for 2020 budget is part of the tax reforms included in the 2019 Finance Act.
The new act has targeted more revenue to finance key government projects especially in the areas of health, education and critical infrastructure and that any business that failed to obey the tax law would face the wrath of the tax authorities.
Amidst the Finance Act strategic objectives is the support for micro, small and medium enterprises in line with the ease of doing business reforms such as VAT inception.
Nami said, “It’s your statutory responsibility whether you just registered today with Corporate Affairs
Commission (CAC) to come over to the Federal Inland Revenue to register as VAT agent. That is the first responsibility.
“The second responsibility is that you should keep a good record of your transaction because if you don’t keep good records and eventually during the compliance process and monitoring process it is discovered that you have traded well above N25m, the taxes will be paid in arrears,” he explained.