FIRS Targets N8tr from Nigerian Taxpayers in 2019

January 8, 2019
FIRS Targets N8tr from Nigerian Taxpayers in 2019

By Dipo Olowookere

The management of Federal Inland Revenue Service (FIRS) has said it hopes to generate not less than N8 trillion in 2019.

Speaking at an event in Lagos tagged Parliamentary Support for Effective Taxation of the Digital Economy, Executive Chairman of FIRS, Mr Babatunde Fowler, said last year, the agency collected a total of N5.3 trillion in taxes, though lower than the over N6 trillion target set at the beginning of 2018.

However, Mr Fowler said this amount was the highest revenue ever generated by FIRS in history.

Before now, the highest ever collected by the federal tax body was N5.07 trillion recorded in 2012.

According to the tax master, the N5.3 trillion generated last year was significant as it was at a period when oil prices averaged $70 per barrel compared with $100 to $120 per barrel between 2010 and 2013.

Giving a breakdown, the tax chief said oil component of the N5.320 trillion was N2.467 trillion representing 46.38 percent, while non-oil element of the collection accounted for N2.852 trillion representing 53.62 percent.

“While we have been steadily increasing revenue collection over the years, our cost of collection has actually been going down.

“In 2016, we collected N3.307 trillion, in 2017 we collected N4.027 trillion and in 2018 we collected N5.320 trillion,” he said.

He further said from audit alone, FIRS collected a total of N212.8 billion from 2278 cases with a huge reduction in audit circle.

“The Service has been making tremendous efforts in also increasing the amount of non-oil revenue it collects. Non-oil collection has contributed 64.99 percent in 2016, in 2017 it contributed 62.25 percent and in 2018 it contributed 53.62 percent.

“This represents the government’s focus on increasing non-oil sources of revenue and the diversification of the Nigerian economy,” he added.

Mr Fowler also stated that various initiatives were implemented by FIRS to enhance tax administration and make taxation as easy as possible.

According to him, FIRS deployed ICT initiatives that enable a taxpayer to pay taxes from anywhere in the world, at any time. With the e-payment channel one can pay taxes with the click of a button and one can also download their receipts.

Other e-Services are the e-Registration, e-Filing, -Stamp Duty and e-Tax Clearance Certificate. “Taxpayers can now also choose the tax office where they would like to conduct their tax transactions.

Before now, if one was registered with a particular tax office, one had to conduct all of their tax transactions in that office. However, to make it more convenient for the taxpayer, they can now choose which ever office they wish to conduct their transactions with. He noted that Nigerian taxpayers are embracing the modern way of tax collection, introduced by the FIRS through the 6-e Solutions.

He said, “We are automating the collection of Value Added Tax, VAT in key sectors which will facilitate reduction in compliance cost in the long term. We are doing System to system integration between banks and FIRS.

“And I am happy to announce to you that we had a 31 percent increase year on year in VAT collection in the banks that have gone live between Jan 2017- Dec 2018 and collected 25 billion so far “Amongst others, there is also the Government Information Financial Management Information System (GIFMIS), which links FIRS to the Office of the Accountant General of the Federation OAGF for real-time exchange of information and data.

“We are also automating the payment of VAT by states through the State Offices of Accountant General Platform (SAG). This will ensure that we automate and deduct at source and remittance of VAT and WHT from state governments’ contract payments directly to FIRS’s account and so far, collected 13 billion.”

He noted that taxpayers that requested for and processed their Tax Clearance Certificate, TCC through tcc.firs.gov.ng, from the comfort of their homes.

“Tax clearance on the platform grew from 9,574 – 59,350 within a year of introducing the platform. “Auto VAT collection in key sectors has also facilitated in reducing the cost of compliance. Between January, 2017 and December, 2018 VAT collection increased by 31 percent which translates to a collection of N25 billion. Overall, in 2019 VAT crossed the N1 trillion mark. Indeed,

He said, “In 2016 FIRS initiated a tax amnesty programme which attracted over 3000 applications for waiver of interest and penalties. The programme resulted in payment of over N68 billion out of about N96.2 billion liability established by the exercise.

The Voluntary Assets and Income Declaration Scheme (VAIDS) was initiated by the Federal Ministry of Finance and the FIRS received over 5122 applications under the Scheme. The Scheme resulted in voluntary declarations of over N92 billion, with over N54 billion paid so far by companies.

Mr Fowler reiterated the fact that only companies that made a profit are obliged to pay taxes. According to him, if a company is situated in Nigeria it is only fair that it pays its fair share of tax for the benefit of all Nigerians.

“FIRS wrote to all commercial banks in May 2018, requesting for a list of companies, partnerships and enterprises with a banking turnover of N1 billion and above.

“This activity was aimed at ascertaining those companies that are compliant with the tax laws and those that are not compliant. So far, non-compliant organisations have paid about N21.75 billion. “Companies that had a Tax Identification Number (TIN) and were paying were 45261, those that had a TIN but were not paying were 40611 and those without a TIN and who were not paying were 34504,” the tax chief said.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

Leave a Reply

Interswitch Opens Platforms for 2019 JAMB/UTME Registration
Previous Story

Interswitch Opens Platforms for 2019 JAMB/UTME Registration

rabiu Abdul Samad BUA Group
Next Story

BUA Group to Expand Market Share With New Cement Plant

Latest from Economy