Over N3trn Lost To Non-Compliance With Value Added Tax Act–FG

The Director General Budget Office of the Federation, Ben Akabueze has revealed that in 2022, Nigeria lost over N3trn through the non-compliance with the Value Added Tax Act.

Akabueze disclosed this during an interview on ARISE TV on Tuesday while addressing issues relating to the 2023 budget. The interview was monitored by THE WHISTLER.

Recall that from January to September last year, the National Bureau of Statistics revealed that the federal government generated the total sum of N1.83trn from VAT.

The DG attributed the loss in VAT to loopholes exploited by foreign shipping companies who do business in Nigeria yet do not remit tax to the government.

Akubueze said, “Some of the new budget expenditure are normally not in the regular annual budget. We have the N553bn the National Assembly missed out in the numbers that they sent to the president to sign, which include money coming from sale of spectrum and licenses of about $530m.

“There is also a loophole in which foreign shipping companies doing businesses in which revenues in Nigeria are exploited, this is one of the things that the finance act 2023 is plugging and what can be achieved from that source.

“With the implementations of the E-custom project that is driven diligently by the FIRS, we expect to see customs revenue improve significantly as the VAT loss to non-compliance is recorded to probably top N3trn.”

The Budget Office DG also revealed that the VAT losses can be curtailed and significant growth seen through the continuous technology drive of the Federal Inland Revenue Service.