FIRS Beats Q2 2020 Tax Collection Target by 101.5%

August 24, 2020
Federal Inland Revenue Service FIRS

By Adedapo Adesanya

The Federal Inland Revenue Service (FIRS) beat its expectations for the second quarter as its achieved 101.5 per cent of its target, raking in N1.29 trillion from April to June 2020.

The tax collection body had been given a target of N1.27 trillion to achieve in three months.

The total collection in the second quarter of 2020 increased by 8.2 per cent compared to N1.19 trillion generated in the previous quarter, and 8.01 per cent decrease compared to N1.4 trillion generated in the corresponding quarter of 2019.

This was contained in the Q2 2020 performance report titled Total Tax Revenue Collection (Oil and Non-oil) For 2nd Quarter, 2020 published by the Planning, Research and Statistics Department of the service.

Giving a breakdown, the body noted that the collection showed that the petroleum profit taxes generated beat expected outcome by 620 per cent to N440 billion in the period, a huge increase when compared to the N71 billion target.

On the other hand, the non-oil taxes did not meet its N1.1 trillion target as it fell short, meeting only 70 per cent of the target as the service generated N848 billion in the quarter.

According to the report, Company Income Tax (CIT) generated N324.3 billion in the second quarter, 73.4 per cent of the expected N441.9 billion while Gas Income tax generated N77.7 billion, 72.9 per cent of an expected N106.7 billion.

Details also showed that import VAT collected by the Nigeria Customs Service (NCS) generated N81.62 billion, while Non-import VAT generated N245.6 billion, and Capital gains tax generated N617.4 million.

In terms of stamp duty, it also beats expectations by 1355.8 per cent as the service generated N62.6 billion during the period, as against a target of N4.3 billion.

Initially, the FIRS was not charged with the collection of stamp duty, this responsibility fell to the Nigeria Postal Service (NIPOST) until the amendment of the Finance Bill 2019 which shifts the responsibility to the tax body.

This, among other factors, established an intra-agency rivalry between both the FIRS and NIPOST, which took to the social media to fire shots at each other.

The House of Representatives later waded into the matter and promised to find a lasting solution to the misunderstanding between the two organisations.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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