FIRS Collects N4.012trn Tax in Nine Months

By Adedapo Adesanya

The Federal Inland Revenue Service (FIRS) has disclosed that it has so far collected a total of N4.012 trillion in the first three quarters of 2019. This indicates an increase of N71 billion compared to N3.941 trillion collected during the same period of 2018.

In a correspondence signed by the Head of Communications and Servicom of the tax agency, Mr Wahab Gbadamosi, it was noted that the sum collected from taxpayers was 61 percent of the total target for the period. Full-year tax revenue collection in 2018 was N5.320 trillion which represents 78.86 percent collection performance to the target for the period.

“Kindly note that our budget for 2019 was raised by N2.02 trillion, representing 30.4 percent increase over the 2018 budget, that is, N6.747 trillion in 2018 to N8.8 trillion in 2019.

“Our total tax collection to date represents 78.2 percent achievement of the corresponding budget of 2018.

“Based on the collection, we expect total collection to equal N5.4 trillion by the end of 2019,” the statement read in part.

It was also revealed that non-oil revenue collection from January to September 2019 stood at N2.423 trillion, representing 72 percent achievement of the non-oil target for the period while oil revenue collection of N1.588 trillion represents 49 percent achievement to target for the period.

The total collection contribution in 2019 shows a percentage ratio of 61 percent for non-oil revenue to 39 percent for oil revenue, while non-oil collection for January to September 2019 grew by 13 percent over the non-oil collection for the corresponding period in 2018.

It was further revealed that during the period under review, the tax body recorded a low income of revenue from Petroleum Profit Tax (PPT) as a result of the shortfall in PPT estimates filed by the International Oil Companies (IOC) caused by production constraints which have continued to fall below the projected figure of 2.3 million barrels per day for the year.

According to FIRS, the huge losses carried forward and tax incentives which stemmed from the Modified Carried Agreements (MCA) by Joint Venture (JV) partners, and unutilized Investment Tax Credits carried forward by the Production Sharing Contract (PSC) contractors also contributed to reduce profits.

Ahead of next year’s budget funding, the Executive Chairman of the agency, Mr Babatunde Fowler, has called on lawmakers to pass legislation that will penalize tax evaders.