The Senate has mandated its Committees on Banking, Insurance and Financial Institutions, and Finance to investigate withholding tax revenues on both bank deposits and dividends.
This was even as it urged banks and Central Security and Clearing System (CSCS) to work with various government agencies and stakeholders in ensuring that collection and remittance of withholding tax to the Federal Government are done using modern automated tax solutions and information technology solutions.
These were resolutions reached on Tuesday by the upper chamber during plenary, and after consideration of a motion sponsored by Uche Ekwunife (PDP – Anambra Central).
Ekwunife, in her presentation, disclosed that “Central Security and Clearing System (CSCS) and Banks in Nigeria do not remit Withholding Tax on Deposit and Dividend to State Governments as and when due.”
According to the lawmaker, most State Government are unable to pay salaries and meet their financial obligations as a result of poor and dwindling revenue.
She raised concerns that “billions of Naira are being held by banks in Nigeria either in form of under remittance or non-remittance of Withholding Tax due to government.”
Ekwunife, however, said the leakages with respect to remittance of Withholding Tax can be addressed using modern tax solutions and information technology.
