Breaking: FG Slams Billionaire Demand On GTB Over Billions Of Commission On Remita Transactions

The Nigerian Federal Government has taken a significant step in its pursuit of revenue generation through the recovery of unpaid Value Added Tax (VAT) on commissions earned from Remita transactions between 2015 and 2022. Remita, a leading financial solution gateway technology, has been instrumental in facilitating the collection of revenue for various Ministries, Departments, and Agencies (MDAs) of the Federal Government.

The directive was given by the House of Representatives Public Accounts Committee, which ordered Guaranty Trust Bank (GTB) to calculate and remit the VAT on the commission received from Remita transactions within the specified period. This move is expected to rake in billions of Naira in revenue for the Federal Government, which has been grappling with a significant budget deficit in recent years.

According to sources, the commission earned by GTB from Remita transactions is substantial, and the recovery of unpaid VAT on these transactions is expected to be a major boost to the government's revenue coffers. The Directives also underscores the Federal Government's determination to ensure that all revenue due to it is collected and accounted for.

GTB, one of Nigeria's leading commercial banks, has been a key player in the country's financial sector, and its involvement in the Remita transactions has generated significant revenue for the bank. However, the bank's failure to remit the VAT on these transactions has raised eyebrows, and the government's move to recover the unpaid tax is seen as a step in the right direction.

The development is also expected to have far-reaching implications for other banks and financial institutions that have been engaging in similar transactions. The Federal Government has been intensifying its efforts to broaden its tax base and increase revenue generation, and the recovery of unpaid VAT on Remita transactions is seen as a key component of this strategy.

The House of Representatives Public Accounts Committee has been at the forefront of the government's efforts to recover unpaid taxes and revenues, and its directive to GTB is a testament to its commitment to ensuring that all revenue due to the government is collected and accounted for. The committee's actions are also seen as a major boost to transparency and accountability in the management of government revenue.

As the Federal Government continues to grapple with the challenges of revenue generation, the recovery of unpaid VAT on Remita transactions is expected to provide a much-needed injection of funds into the government's coffers. The move is also expected to serve as a deterrent to other companies and financial institutions that may be engaging in similar practices, and underscores the government's determination to ensure that all revenue due to it is collected and accounted for.