Senator Ekwunife moves motion for an automated tax solution that allows for collection and remittance of the withholding tax on bank deposits and dividends
– harps on the need for improvement in government revenue
The Senator representing Anambra Central Senatorial District, Senator Uche Ekwunife on Tuesday moved a motion to address the inability of government to determine and collect the withholding tax on bank deposits and dividends payable to it by banks.
Through the motion entitled, Motion on Digitization/Automation of Collection and Remittance on Withholding Tax on Bank Deposits and Dividends Payments for an Enhanced Internally Generated Revenue, Ekwunife noted that it has been discovered that Nigerian Banks under remit or do not remit the witholding tax on bank deposits and dividends to government.
Moving the motion at plenary, Senator Ekwunife expressed concern that billions of Naira belonging to government are being held by most banks in Nigeria in form of under remittance or non-remittance of withholding tax on bank deposits and dividends due to government.
Noting that the witholding tax on bank deposits and dividends is one of the major sources of revenue for government, Senator Ekwunife stressed that the non-existence of an automated means of remittance has left government at the mercy of the banks which remit to government any amount they desire as it is difficult to reconcile what amount is due to government without an automated means of doing so, thereby eroding the revenue due to government.
The Senate in a show of support for the motion, unanimously approved the motion which seeks to improve government revenue without any consequential burden on Nigerians.
The President of the Senate, Senator Ahmad Lawan while thanking Senator Ekwunife for moving what he described as an ingenious and viable motion, mandated the Senate Committee on Banking, Insurance and other Financial Institutions, as well as the Senate Committee on Finance to investigate the matter with the view of ensuring that withholding tax revenues on both bank deposits and dividends are recovered and report back to the Senate in four weeks.
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