The mode of sharing the monthly FAAC Allocation among the tiers of Government in Nigeria might be altered by the Presidential Committee on Tax Reform and Fiscal Policy.
This was disclosed by the Chairman of The Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, who said it is a bid to revamp the Federation Account Allocation committee disbursement mechanism.
Oyedele said there is a belief that the system can be designed to credit the account of Local, State and Federal Governments daily.
He added “that the shift aims to streamline operations, redirecting the focus of monthly FAAC meetings towards national fiscal strategies rather than routine reconciliations, which could be delegated to junior accountants”.
He also addressed the collection cost which varies from four person to thirty percent. If the collection of revenue is above one percent, then it should not be collected at all.
“We are serious with the one per cent and it should cut across everybody, if you cannot collect revenue with one per cent, then you should not be collecting it at all. That’s why we were saying let government agencies focus on the primary reason they were set up for.”
“If they are not set up to collect tax, they can’t be efficient and competent in doing it. Things will work better if everybody plays to their strength there’s a reason why every country has their revenue collection agency and not to replicate that function and be expecting that everything will be fine. A country like South Africa is under one per cent,” he stated.
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