Presentation on theme: "THE ROLE OF ICT IN INTERNALLY GENERATED REVENUE (IGR)"— Presentation transcript:
1THE ROLE OF ICT IN INTERNALLY GENERATED REVENUE (IGR) A paper Presentation at the First Zonal ICT Infrastructure Forum Organized by Galaxy Backbone in Conjunction with South East Governor’s Forum (October 11, 2010)Presented by:Ifueko Omoigui OkauruExecutive Chairman, Federal Inland Revenue ServiceChairman, Joint Tax Board
2THE ROLE OF ICT IN INTERNALLY GENERATED REVENUE (IGR) Presented by:Ifueko Omoigui OkauruExecutive Chairman, Federal Inland Revenue ServiceChairman, Joint Tax BoardAt:The Women Development CentreAwka, Anambra State
3ProtocolsYour Excellency the Executive Governor of Anambra State, Your Excellencies, State Governors here present, members of Anambra State Executive Council, all protocols observed.
4IntroductionI am delighted to be in your midst today at this unique gathering of your Excellencies the Governors of the South Eastern States of Nigeria. This is unique and very important because it is a forum organized to channel the direction for the development of the Eastern states and the people and the country in general. I believe that development should start with our communal efforts and spread through the local councils to the states and then we can talk of development in the country. Development should be centripetal, it should spread from the component parts towards the center and not the other way round and that is while there is the ever increasing understanding of the federal system as contained in our constitution.We cannot really talk about development without growing government expenditure because those indices that make for the sustainable economic, social and technological as well as environmental changes come with sufficient funding. Growth in government expenditure is fuelled by its counterpart, which is revenue. Revenue and expenditure are the components upon which budgetary processes are built. So this gathering is timely and I like to urge the organizers to extend this to other parts of the country and make it happen more frequently to enable us all keep up with trends and development world over.
5The Concept of Internally Generated Revenue The objective of my presentation is to clarify the role of Information and Communication Technology (ICT) in enhancing Internally Generated Revenue, but before we delve into technological enablement, there is a need to have a clear understanding of the concept of internally generated revenue.Internally generated revenue originates from statutory and mandatory levies such as:TaxRoyaltiesCustoms DutiesLevies
6The Concept of Internally Generated Revenue Internally Generated Revenue in normal day to day parlance refers to those revenue sources that are generated solely by the State and Local Governments.Permit me to emphasize here that our real focus should be on deepening and widening the entire revenue base and not just internally generated revenues as defined, as what is of utmost importance is that additional revenues are generated for the State and Local Government ‘regardless’ of how it is collected.We should focus more on the quantum of collection and how to grow that quantum and allocate it, than on merely who collects it as such focus sub-optimises what can be collected, and how monies are utilized. Indeed, it accentuates the challenges of multiple taxation which is not only unconstitutional, but exacerbates the problems of the tax payer and electorate who increasingly get frustrated at the numerous amount of taxes borne – formal and informal for which a clear solution needs to be articulated and implemented by all of the State Governors on behalf of both State and Local Governments as provided for in the Constitution.
7Sources of Revenue Available to Government All over the world, government must proactively work out a viable revenue profile for the country to fund its expenditure with efforts geared towards raising more revenue through effective harvesting of existing sources and more importantly, imaginative investigation and development of new initiatives.Traditionally, revenue, in a state, is the income that a government derives from taxes. So it is not uncommon to see agencies in charge of taxes referred to as revenue outfits. But beyond taxation, there are other sources of revenue to the government such as from royalty payments, investment income, duties on importation and user charges. Indeed the Nigerian Constitution defines revenue to mean- any income or return accruing to or derived by the Government of the Federation from any source and includeso any receipt, however described, arising from the operation of any lawo any return, however described, arising from or in respect of any property held by the Government of the Federationo any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body
8Sources of Revenue Available to Government Even though some taxes such as the Personal Income Tax and Stamp Duties are collected by the State and in all cases accrue as may be distributed to the State, the enabling laws are enacted by the National Assembly in accordance with the Constitution.To date, the Constitution clearly notes that the collection of Personal Income Tax, Capital Gains Tax and Stamp Duties which are Federal Taxes can take place at the State level where a law of the National Assembly has been enacted as is presently the case. In addition, beyond the provision in the Constitution which specifies charges that can be charged by the Local Governments, the Constitution also provides that the State House of Assembly can enact such laws as maybe necessary and are not in conflict with the Constitution for the peace, order and good government of the State. These general provisions give scope to the State to enact laws (for both State and Local Government) that would ensure good governance beyond those taxes and revenue sources that are enshrined in the Constitution.
9Sources of Revenue Available to Government Nigeria is structured as a federation. It has a Federal Government, thirty six (36) states of the Federation, a Federal Capital Territory (FCT) and 774 local government councils all to be funded.The Federal Government owns the nation’s natural resources that includes oil and gas and as such controls the process of granting contracts to multinational partners. Under the derivation formula inserted in the 1999 Constitution, no less than 13 per cent of oil revenue must be returned directly to states from which the revenue was produced.
10Sources of Revenue Available to Government In addition to the above, the Nigerian Constitution recognises different sources of revenue for the state:- Revenues accruing to the Federation account (all revenues collected under the exclusive legislative list except proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigerian Police Force, the ministry of foreign affairs and the residents of the Federal Capital Territory – s. 80, 120, 162 )- Revenues accruing to special funds accounts setup for that purpose by an act of the National Assembly (or in the case of the State, any law of a House of Assembly) (s.80, s. 120).- All revenues or monies raised or received by the Federation (in the case of the Federation or State in the case of the State) not being revenues or moneys payable under the Constitution or any act of the National Assembly into any other public fund of the Federation established for a specific purpose) – S. 80, S. 120
11Sources of Revenue Available to Government In accordance with the matters specified in the Second Schedule to the Constitution and in item D of Part II of the Second Schedule, the following Acts of the National Assembly have provided revenue sources for the Federation and the State as specified in the Constitution:- Petroleum Profits Tax Act – Income accrues to Federation Account- Companies Income Tax Act – Income accrues to Federation Account- Personal Income Tax Act – Income could accrue to Federation Account except as specified in s. 162 and dependent on who collects Personal Income Tax which as enacted by the National Assembly is collected by the States- Stamp Duties Act – Income should accrue to the Federation Account other than that collected by the State as specified in the Taxes and Levies Act- Customs and Excise Tariffs Act – Income accrues to Federation Account- Value Added Tax Act – creating a special value added tax pool account distributable as may be specified by the Act or as may be agreed administratively- Education Tax Act – created a special education tax fund account distributable as may be specified by the Act or as may be agreed administratively- Nigerian Information Technology Development Agency – creating a special technology tax fund account distributable as may be specified by the Act or as may be agreed administratively
12Sources of Revenue Available to Government As a result, States and Local governments have taken advantage of this provision in the constitution and with the enactment of the Taxes and Levies (Approved List for Collection) Act 21 of 1998, to have several sources of revenue within the State to include but not limited to:Federal Taxes collected at the State LevelPersonal Income Tax in respect ofPay-As-You-Earn (PAYE); andDirect taxationStamp Duties on instruments executed by for IndividualsCapital Gains for Individuals
13Sources of Revenue Available to Government 2. Taxes and Levies under the powers imposed by the Constitution and as specified in the Taxes and Levies Act No 21 of 1998 to be collected by the State GovernmentPools betting and lotteries, gaming and casino taxesRoad taxesBusiness premises registration fee in respect of-urban areas as defined by each state, maximum of-N10,000 for registration: andN5,000 per annum for renewal of registration; andrural areas –N2,000 for registration; andN1,000 per annum for renewal of registrationDevelopment levy (individuals only)Naming of street registration fees in state capitalRight of Occupancy fees on lands owned by state government in urban areas of the stateMarket taxes and levies where state finance is involved
14Sources of Revenue Available to Government 3. Taxes and Levies under the powers imposed by the Constitution and as specified in the Taxes and Levies Act No 21 of 1998 to be collected by the Local Governments – including but not restricted toShops and Kiosks ratesTenement ratesOn and Off Liquor License FeesSlaughter Slab FeesMarriage, birth and death registration feesNaming of street registration fees excluding streets in the State CapitalRight of Occupancy fees on lands in the rural areas eluding those collectible by the Federal and State GovernmentsMarket Taxes and levies excluding market where State Finance is involved Motor Park levies
15Sources of Revenue Available to Government i) Domestic animal license feesj) Bicycle, truck, canoe, wheelbarrow and cart fees , other than mechanically propelled truckk) Cattle tax payable by cattle farmersl) Merriment and Road closure levym) Road and Television licenses fees (other than radio and television transmitters)n) Vehicle radio license fees (to be imposed by the Local Government of the State in which the car is registered)o) Wrong parking chargesp) Public convenience, sewage and refuse disposal feesq) Customary Burial Ground Permit feesr) Religious places establishment permit feess) Signboard and advertisement permit fees
16Sources of Revenue Available to Government Beyond the revenue sources accruing from acts of the National Assembly, the State and Local Governments as empowered by the Constitution may also create additional funds and revenue sources as may be supported by the Constitution.Currently, the Federal Government (FG), State Governments (SG) and Local Governments (LG) obtain a significant amount of funding (if not all) from the sources identified below:a. The Federation Account – to which monies collected by the NNPC (Crude Oil Sales), FIRS (Taxes – Petroleum Profits Tax, Companies Income Tax, Stamp Duties and Capital Gains Tax), DPR (Royalties) and Nigeria Customs Service (Duties) - accrue to the FG, SG, & LG - depends largely on earnings from an exhaustible resource – crude oilb. The VAT pool account – to which monies collected by the FIRS accrue for the most part (85%) to State and Local Governmentsc. The Consolidated Revenue Fund account - otherwise referred to as Internally Generated Revenues – collected by the State Internal Revenue Service (SIRS) and the FIRS, a significant amount of this for the most part is derivable from Personal Income Tax (especially PAYE administration)d. The Education Tax Fund account – collected through education tax by the FIRS for the Education Trust Fund which administers such monies direct to eligible educational institutionse. Grants and Loans from Multilateral Donor agenciesf. Loans from Banks and other sources of credit financing
17Current RealitiesIt has been observed that the trend now is for states to source for funds by borrowing under what ever guise it is called. Either by loans from the banks or international institutions or by floating bonds or the use of public private partnership agreements, there are obligations attached to these sources, and these obligations are spread over a period of time. However, the government must borrow because this has its benefits and borrowing to fund your businesses or projects are acceptable practices world over but no government relies on grants and donations from agencies to plan its business.Presently, funding through customs duties is, for the federal government, a veritable source of revenue, however, in view of the fragile nature of our economy and the need to discourage importation of goods, while aggressively encouraging local production, then this source will eventually rank behind other sources of revenue generation in the future.
18Current RealitiesOn sale of and royalties from oil and other resources, these currently are the mainstay of our economic growth and development. But they are worrisome, apart from the fact that they are exhaustible resources, they leave so much effect on the environment that its equally giving the world some source for concern.The above scenario leaves us with one major source to which we all need to pay so much attention and that is taxation. I am an advocate of taxation for the development and I want to enjoin you all to please embrace this philosophy of taxation for development because that is what has brought the big economies to their current states.In Nigeria, available information reveals that the tax ratio to the Gross Domestic Product, GDP using the 2009 index is approximately 6% where countries like, Sweden, Norway, France, Germany, Canada, Australia, USA, UK, South Africa and China have 50%, 44%, 46%, 41%, 33%, 30%, 28%, 39%, 27% and 17% respectively, and majority of these are countries we supposedly sharing common wealth.
19The Nigerian Tax System I have decided to go on this long journey to create a common understanding amongst us that in growing our Internally Generated Revenue (IGR) our focus should be on growing the tax system, which comprises of the tax policy, the tax legislation and ultimately the tax administration.We need to create the environment in our states for businesses to grow, for investors to come in, for people to stay back in their communities and impact and have confidence in our communities. For us to go back and embrace farming (Agriculture) and create employment for the teeming masses of unemployed youths of our country. All these we can do with the instrumentality of taxation and we surely can grow our IGRs.As a potential and powerful tool in the hands of any government, taxation can determine the direction of any economic state and the level of private sector participation as well as the structuring and size of investment into the system. It is important to note that expanded investment will increase the level employment capacity and this can be encouraged with carefully planned direct incentives. A good example is the in the area of Integrated rural development schemes to encourage private participation, this would aid the development of basic infrastructure and amenities in these areas and increase job availability as well as discourage the surge towards the urban centres.
20The Nigerian Tax System For the development of the tax legislations, we need to collaborate with our representatives at the National and State Houses of Assembly for the passage of all outstanding tax bills before them. They are bills for the development of the entire tax systems having been extensively worked on by experts before presentation to the Executive for onward delivery to the Houses of Assembly. And for states who have not keyed into the amendment of their tax legislations, they should take a cue from other states.The Federal Ministry of Finance seized the initiative to develop a national tax policy document for the country in line with the recommendations of the Study and Working Groups on the development of the tax system in Nigeria. There was the previous perception that the problems plaguing Nigeria’s tax system were not being adequately tackled due to Government’s heavy reliance on revenues derived from oil, as a result of which little or no attention was given to revenue from other sources, such as taxation. However, there is now a renewed commitment by the Federal Government to diversify the economy by growing the non-oil tax revenue in order to develop a stable and sustainable revenue source to finance developmental projects.
21The Nigerian Tax System After some extensive work and series of consultation with stakeholders, the Presidential Committee on the National Tax Policy and its Technical Committee presented the draft policy to the Federal Executive Council (FEC) in 2010 and on the 20th February, 2010, FEC approved the National Tax Policy for the country with the directive that the document be further presented before the National Economic Council for their buy in. The major highlights of the National Tax Policy include the following:(i) distinguish taxation from revenue and situate the role of taxation in overall revenue generation;(ii) show the necessity for sustainable development in our pattern of revenue generation and foster healthy competition amongst tax and revenue authorities in Nigeria at the Federal and State level to facilitate rapid development of the tax sector in Nigeria. The focus of the competition shall be to maximize tax revenue within the jurisdiction of each Government in line with constitutional and statutory provisions;(iii) the role of fiscal federalism in our tax system and the resolution of issues surrounding the jurisdiction of Federal, State and Local Governments over collection, control, allocation and expenditure of tax revenue;
22The Nigerian Tax System (iv) the objectives and basic features of the Nigerian tax system;(v) the guiding principles for stakeholders, their roles, responsibilities and the relationship between the stakeholders. Some of the identified stakeholders are:(a) the Executive arm of Government including, the Presidency, State Governors, the Federal and State Executive Council, the National Economic Council, National Council of States, the Federal and State Ministries of Finance and Education and Local Government Chairmen and Councils;(b) the Legislature and Judiciary at Federal and State levels;(c) taxing authorities at Federal and State level and the Joint Tax Board; and(d) taxpayers, professional bodies, tax consultants and practitioners.(vi) the role, which taxation can play as a tool for wealth creation and employment and the various steps which could be taken to achieve this, such as variation of tax rates in response to economic developments, shift of focus from direct to indirect taxation and creation of special arrangements (such as tax free zones, tax incentives and tax treaties) to attract increased investment into Nigeria;(vii) various issues relating to tax administration, such as intelligence and information gathering, registration of all taxable persons, enforcement of tax laws by tackling tax evasion and avoidance, funding for tax refunds, automation of all tax processes and accounting for tax revenue which has been collected.
23The Nigerian Tax System mechanisms for resolution of fiscal and tax disputes between Federal and State Governments, State Governments, State and Local Governments, the Executive, Legislature and Judiciary and between tax authorities and taxpayers;(ix) the need to institutionalise a tax culture in Nigeria and the institutions expected to drive it, such as the Ministry of Finance, Revenue authorities, the academia / educational institutions and the National and State Houses of Assembly. One major initiative through which a sustainable tax culture can be achieved is through the unique Tax Identification Number (UTIN), which is expected to be a nationwide mode of identification and registration of all taxpayers, which would be accessible to all States and Federal tax authorities;(x) other issues, such as elimination of bottlenecks in the tax system, identification of revenue items which are not currently being collected, accountability for tax and other revenue being collected and the proper utilization of tax revenues and the mode of communication to the tax payer.
24The Nigerian Tax System And on March 9, 2010, the Policy document was presented to the National Economic Council by the Honourable Minister of Finance to guarantee national acceptability and implementation in the country.My next focus is on tax administration in the country, and I intend to look at how we can use the Information and Communications Technology, ICT to grow the revenue base.Any discussion on taxation must centre on three fundamental areas from where it can capture the tax operation in its entirety. These areas are the tax base, the object of tax and the applicable rates.The tax base is primarily on what the tax is being imposed, be it the income or consumption. What items majorly constitute the income in that system and what are their consumption and consumption pattern. This is necessary for planning purposes, as it would guide the government in the selection of its taxes and where to focus for improved revenue.
25The Nigerian Tax System The object of taxation is the taxpayer, individual or corporate entity. The tax administration needs to focus on who are its taxpayers and what is their spread. The combination of these factors will assist in determining what rates to apply where and when to apply such rates.These three factors do not take away anything from the extant legislations, but provide sufficient guide in the mix of policy, legislation and administration machineries.The big question then is what role does ICT play in these tripod or how do we use technology to improve revenue collection given the peculiarities of our system?
26The Eastern StatesThe States in the Eastern part of the country comprises of Abia, Anambra, Ebonyi, Enugu, and Imo State. One unique feature of the States is the commonality in resources endowment.Agriculture and farming potentials exist in all the states and there is quite a large deposit of mineral resources among the states, large depot of bitumen and laterite, phosphate, lead, zinc copper, coal, iron oil, natural gas, lime stone, granite, kaolin, gypsum, talc, trona, etc.There are tourism potentials in all the states to boost the hospitality industry. The states really do have the potentials for growth and development.
27Revenue Profiles of the States According to the published Central Bank Report for 2007 and 2008 (2009 CBN Report yet to be published), the total revenue for the five eastern states amounted to N Billion and N Billion respectively (see Appendix 1). This revenue is made up of the Gross Statutory Allocation, Share of Excess Crude Account, the Share from the Value Added Account, Internally Generated Revenue, Stabilisation funds, Grants and Others. It is however interesting to note that the total IGR as a percentage of the Revenue stands at 9.11% in 2007 and 9.58% in This relationship ranges from 4% and 14% across the states, but one interesting development is that the total revenue or funds available to all the states in 2007 was less than the amount available to only Akwa Ibom State or Rivers State the trend that was repeated in Lagos State however generated for the period, 2007 and 2008, an IGR of N141 Billion and N139 Billion, hence the state placed less reliance on the other sources of income.So what did Lagos do differently or what is Lagos doing different.What was done in Lagos is similar to what we are doing at the Federal Inland Revenue that has made tax revenue to grow into trillions of Naira between 2005 and 2009.
28The Role of ICTThough there are various types of Internally Generated Revenue, my focus here will be on tax. However, the fundamental principle is equally applicable to other forms of internally generated revenue.An efficient, fair and transparent tax system not only improves fiscal performance but also furthers good governance and strengthens legitimacy. Revenue Generation Agencies will be able to operate an efficient and transparent system by leveraging the power of ICT.
29What is ICT?Information and Communication Technology (ICT) is the digital processing and utilization of information by the use of electronic computers.ICT comprises of the storage, retrieval, conversion and transmission of information.
30What is ICT?ICT is the combination of digital processing and electronic communication.The convergence of digital processing and electronic communication has led to a paradigm shift in business process automation and the creation of new capabilities that were unthinkable some decades ago. FIRS has leveraged on these new capabilities to improve revenue collection.
31Tax AdministrationThere are six logical steps involved in Tax Administration, namely:Identification/RegistrationAssessmentCollectionAccountingMonitoring/AuditEnforcementICT makes it possible to automate all the above processes fully or partially, as the case may be.
32Use of ICT in Tax Administration/ Revenue Generation The deployment of ICT solution will assist Revenue Agencies to effectively and efficiently discharge their mandate in terms of identification and registration of Tax payers, returns and payment processing, audit, accounting and other Tax Administration functions.More importantly, fraud or sharp practices inherent in manual transaction processing will be eliminated in a fully automated Revenue Administration system. This would lead to more Revenue entering government’s purse.
33Using ICT to Achieve Excellence in Revenue Generation To achieve excellence in revenue generation, government must focus on the most important concepts such as “decreasing the number of human errors by automating ordinary procedures”, “making it possible to pay tax anytime and almost anywhere”, and building capacity by training and retraining of its personnel.
34Enterprise Resource Planning (ERP) Beyond tax system, each revenue authority needs to invest in enterprise resource planning system that will assist the tax office in managing functions such as Human Resources, Finance and Accounts, Procurement, Facilities Management etc.All these will enable the tax authority to effectively manage its staff and assets for higher performance.
35Unique Taxpayer Identification Number/Taxpayer database One of the critical pillars of tax administration is access to information in a timely and convenient manner.In this regard, best practice is to have a single database which covers all proceedings in relation to taxable properties or activities and taxpayers, which include identification and registration, valuation, billing, collection and enforcement.The Joint Tax Board is implementing the National Economic Council approved project- the Unique Taxpayer Identification Number (UTIN) project aimed at deploying a system that will nationally identify a taxpayer for life and that will enable such a national database to be created.
36Unique Taxpayer Identification Number/Taxpayer database The UTIN system will create the platform for the harmonization of tax administration in Nigeria and provide useful data for the identification and monitoring of taxpayers in Nigeria.This system will create the platform for automation of revenue generation by respective tax authorities, and will identify a taxpayer uniquely nationwide thereby enhancing information sharing between the Federal authorities and the state tax authorities, for proper tax assessment, and reduction in multiple taxation.This will lead to higher compliance and increased revenue for Government. The UTIN system when fully in place will also provide various other spin offs for our economy, such as banking and other financial services, procurement, national security, national planning, law enforcement and others.
37Integrated Tax Administration System (ITAS) Whereas tax authorities have moved a step forward by automating their collection system, this represents just one part of an entire system that needs to be integrated to the whole.Building on UTIN, each revenue authority should have the platform to implement an integrated tax administration system (ITAS). ITAS automates the processes for registration, self assessment, audit, payments, refund, accounting and other functions of a tax authority.Beyond this, for a revenue authority to fully implement an ITAS, gives an image of modernity and accountability. It helps the taxpayer to trust the system and have a sense of pride in the image of efficiency of public sector revenue management.
38Aligning ICT to Organizational Goals: FIRS Experience Let us examine the relationship between ICT and the vision and mission of FIRS:Vision"To deliver quality service to taxpayers in partnership with other stakeholders and make taxation the pivot of national development"Mission"To operate a transparent and efficient tax system that optimizes tax revenue collection and voluntary compliance“ICT facilitates the establishment of an efficient and transparent tax administration and also helps to deliver quality services to taxpayers, thereby improving tax revenue collection and voluntary compliance.
40ICT GovernanceFIRS has established ICT Governance in order to achieve the following objectives:To align ICT with FIRS vision, mission, mandate and organizational objectivesTo ensure that the investments in ICT generate business valueTo mitigate the risks associated with ICT
41FIRS ICT Assets Where we are: The use of Pay Direct software to collect taxes through all approved collecting banksA web portal for on-line, real- time monitoring of collectionsA TaxPayer database with unique taxpayer identification numbering capabilityElectronic access to FIRS Domiciliary accounts held offshore by the central bank of Nigeria (AutoSWIFT)Connectivity of Revenue House and Integrated Tax offices around the country, through wide area network (WAN)HR/Payroll AutomationBusiness continuity/disaster recovery site in Lagos
42FIRS ICT Assets Next Steps On-line payment portal tax card Integration with third party databases (integration with the Nigeria Customs Service, Corporate Affairs Commission etc.)Review and Re-engineering of all core tax administration processes and implementation of Integrated Tax Administration System (ITAS)Electronic Document Management SystemHR Re-engineering/AutomationWorkflow Automation (for all departments and units e.g. computer aided facilities management system, case management system, finance and accounts software, e-procurement, video security surveillance etc.)Unified CommunicationContact CenterImplementation of Unique Taxpayer Identification Number (UTIN) in collaboration with other stakeholders (JTB)Connectivity of all FIRS offices through optic fibreImplementation of FIRS Library Automation, Virtual Library and E-Learning System
43Organizational Objectives There is a consistent set of objectives that applies to all successful organizations:A focus on the customerProviding value for moneySpeed and timelinessQuality of servicePerformance against standards
44How ICT enables achievement of Organizational Objectives ICT empowers people to perform their duties efficiently and effectivelyOrganizations must provide relevant ICT tools and infrastructure in terms of Hardware, Software and Connectivity, in order to derive maximum benefits from ICTTraining/Capacity Building is of utmost importance
45ICT Capacity BuildingICT is not an end in itself, rather, it is a tool to empower people.ICT cannot substitute for human intervention.It is imperative to provide proper and relevant ICT training to the personnel in organizations, to prevent under-utilization of ICT.It is also important to provide training to staff in their various fields of specialization.A well trained and motivated workforce will always outperform others who are less trained.FIRS has taken the above into consideration in designing various capacity building programs for it’s staff through the Learning and Development Department.
47Unified Communication FIRS is in the process of implementing unified communication which will enable it’s staff to communicate through various channels such as voice, video, text, chat etc.Enables real-time communication between staff
48Human Resources and Payroll Management System FIRS payroll has been automated using SAPAutomates the management of human resources and payroll
49FIRS Electronic Document Management System FIRS is in the process of implementing an Electronic Document Management SystemFor easy archiving and retrieval of documents
50Web Application: FIRS Online Taxpayers online payment portalImproves accessibility, removes geographical boundaries. Enables taxpayers to make payment from any part of the world.
51Proper Deployment of ICT Technology is an efficient tool when used properly; otherwise it may become a problem rather than a solution. Technology is only efficient when properly deployed and handled by well – trained, skilled personnel and embedded in the workflow of the organization.
52ConclusionAutomation of revenue collection produces efficiency, effectiveness and transparencyIn order to optimize internally generated revenue collection, revenue collection agencies must align their ICT investments with corporate strategies and organizational objectives. This is where the human element plays a significant role.Information Technology is not a substitute for human capital, however, it is a tool that empowers the people when properly managed.