The Chairman of the Benue State Internal Revenue Service (BIRS), Mr. Joseph Kwaghgba, has clarified that the agency’s lawful responsibility is limited to revenue collection and remittance to government coffers.
Mr. Kwaghgba, who was reacting to claims in Makurdi, the state capital recently that BIRS had failed to fund the operations of another government agency stressed that it has no mandate to fund the activities of ministries, departments and agencies (MDAs).
He described such allegations as unprecedented and inconsistent with the legal framework governing tax administration, insisting that agencies accusing BIRS of withholding funds misunderstand the revenue administration process.
The tax boss explained that every government agency operates within an approved annual budget covering both recurrent and capital expenditures, while any shortfall is addressed by the government through other lawful means, including borrowing where necessary.
According to Mr. Kwaghgba, BIRS is established by law to collect all government revenue and ensure that such funds are remitted into government accounts. He maintained that the agency has no authority to distribute the money it collects, noting that the release and allocation of funds to government agencies fall under the responsibility of the Ministry of Finance.
The BIRS chairman acknowledged that some revenue-generating agencies are permitted by law to retain part of their collections as rebates to support essential services. He cited the Benue State Environmental Sanitation Authority (BENSESA) as one of such agencies, explaining that the arrangement is provided for under the law and does not give BIRS the authority to determine when or how additional funds are released.
Speaking on sanitation concerns at the Modern Market, Mr. Kwaghgba said the responsibility for waste evacuation rests with BENSESA, while the management of the market is under the Ministry of Commerce. He advised the leadership of BENSESA to explore lawful and sustainable ways of addressing its operational challenges instead of expecting BIRS to finance its activities.
He, however, noted that BIRS has, on some occasions, undertaken interventions from its operating resources in the interest of public safety, including at the Modern Market. He stressed that such interventions are discretionary and should not be interpreted as part of the agency’s statutory responsibilities or as an obligation to fund other government institutions.
Mr. Kwaghgba attributed the improvements in the state’s Internally Generated Revenue (IGR) to reforms introduced by the Fr. Hyacinth Alia administration, reiterating that public revenue administration is strictly regulated by law.
The Benue tax boss warned that any agency that collects and spends public revenue without remitting it to government coffers is liable to prosecution, emphasising that BIRS remains a service provider committed to collecting and remitting revenue in accordance with the law, rather than executing projects or financing other agencies.
