Making tax registration a walk-through process, simplifying tax processes and audit remain top recommendations for making the tax system work more efficiently. Behind this lofty recommendation are ICT and automation.
The ICT dynamics to taxation is the reason why for the first time since its 2016 establishment, the Kwara State Internal Revenue Service (KW-IRS) has generated a whopping sum of ₦9,598,504,939.90 as IGR for the state in the first quarter of 2021.
ICT in KW-IRS’ summation has helped the state to consistently block leakages formerly in the tax system with the resultant effect of a bumper harvest.
Taxmobile.online gathered from a statement by the Executive Chairman of the agency, Mrs. Shade Omoniyi, that the increase in revenue is coming as a recovery from the dreaded economic consequences of the Covid-19 pandemic which limited the state’s resources due to uncompromising adherence to tax breaks and waivers for businesses during the period.
The manual nature of KW-IRS’ 2020 operation due to the limitation of movement caused by the Covid-19 pandemic is the reason why ICT has helped to change the dimension in 2021.
Excerpts from Omoniyi’s statement,
“Due to the COVID-19 restrictions, Kwara’s uncompromising adherence to tax break and waivers for businesses during the period, and the fact of its operations being majorly manual as at last year.”
“Kwara State Internal Revenue Service (KW-IRS) since inception has operated a manual tax administration system. This means the assessment and collection of relevant taxes payable to the state government from both KW-IRS and other MDAs are on a contract basis. Despite this, the Service has recorded steady IGR growth over the years. Upon its assumption of office in October 2019, the Service’s new management began working tirelessly to sustain this momentum. These efforts culminated in the IGR growth from ₦23billion as of 30th September to N30.7billion as of the end of the year, 2019.
The Service did not rest on its oars as various revenue and cost-cutting initiatives were immediately implemented to shore up the State IGR while it worked assiduously to automate its revenue and tax administration processes. The various revenue leakage blockages paid off when, in quarter one of 2020, the Service generated ₦7billion.