HOUSE OF REPRESENTATIVES ORDERS GTBANK TO CALCULATE, REMIT VAT ON REMITTANCE TRANSACTIONS TO FG 12-09-24
By Sadiq Aminu House of Representatives Public Accounts Committee, PAC has ordered Guaranty Trust Bank, GTB, to calculate and remit the Value Added Tax, VAT, on the commission received from Remita from 2015 to 2022, to the federal government recovery accounts.
The Chairman of the Committee, Mr. Bamidele Salam gave the directive during investigation hearing on alleged revenue leakages through REMITA platform and non-compliance with standard operating procedure and other allied service agreements.
The committee expressed concerns on evidence of remittance of VAT components of Remita collections and collection of fees in the first Regime of the Remita transaction.
In his presentation the Executive Director of GTB, Mr Ahmed Liman said the bank did not remit the VAT for the period of 8 years.
“We believe that Remita is saddled with the responsibility of sharing the commission fees between the payment receiving parties.
“In our mind, we think Remita has done the needful before sharing the fees between the parties.”
Mr. Liman said the collection of fees in the first Regime of the Remita transaction, the bank charges 0.75 per cent on all the payers who used the Remita platform.
Other Banks that appeared before the committee were referred to the reconciliation sub-committee in order to address the discrepancies that were noted during their presentations.