Senate to probe non-remittal of tax by banks

Senate to probe non-remittal of tax by banks

The Senate on Tuesday, February 25 resolved to investigate the non-remittance of tax by banks and clearing-houses to state governments.

The Senate further charged the Committees on Banking, Insurance, and other Financial Institutions and Finance to investigate the alleged non-remittances.

This resolution followed the consideration of a motion moved by Sen. Uche Ekwunife “on the need to digitalise collection and remittance of withholding tax on bank deposits and dividends payments for enhanced state government internally generated revenue (lGR).”

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Moving the motion, Sen Ekwunife noted that; the “Central Security & Clearing System (CSCS) and banks in Nigeria do not remit or withholding tax on bank deposit and dividend to state government as at when due.”

She blamed the inability of the State governments to pay salaries on the withholding of tax by the banks.

“There is a need for states to increase their internally generated revenue which has become imperative; given the dwindling revenue from the federation account. This has left various state governments in Nigeria; with the task of formulating strategies to improve the revenue base of their states,“ she said.

The Senator added that; “remittances without recourse to details is capable of and already eroding the revenue due to the state governments.”

She opined that leakages with respect to remittance of withholding taxpayer can be addressed using modern tax solutions and information technology.

About The Author

Mayowa Oladeji

A writer with a keen interest in human stories and topical issues around the world. mayowa.oladeji@1stnews.com

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