FIRS boss, Babatunde Fowler
The Federal Inland Revenue Service, through tax collection,
generated the sum of N2.11tn as revenue from January to July this year.
This is contained in a progress report of the FIRS for the period
under review obtained by the News Agency of Nigeria on Monday, showing
the revenue performance and impact of the new tax regime.
The aggregate revenue projected in the 2017 budget is N4.94tn, out
of which oil revenue is expected to contribute N1.98tn. This is based on
an estimated crude oil production of 2.2 million barrels per day at an
exchange rate of N305 to a dollar.
Non-oil revenue for the year is projected at N1.37tn, which
represents about 28 per cent of the budgeted revenue. Independent
revenues, various recoveries and mining will account for the balance of
about N1.58tn.
A breakdown of the report showed that the FIRS collected N720.28bn
as Petroleum Profit Tax from January to July this year, while the Value
Added Tax revenue collected in the same period was N548.22bn.
The Federal Government had also collected the sum of N679.9bn as
Company Income Tax and N91.4bn as Education Tax in the first seven
months of the year.
The report also showed that the consolidated tax revenue for the
first seven month of the year was N62.3bn, which has already superseded
the N59.8bn generated from the area in the entire 2016 financial year.
Also, the service recorded success in boosting its collection of
the National Information Technology Development Fund levy, which went
from N6.75bn in 2016 to N9.87bn in the first seven months of 2017.
A further analysis of the report showed that the FIRS generated
more money from taxing the non-oil sector compared to the oil and gas
sector. The report showed that non-oil tax revenue contribution was at
65.9 per cent, while oil and gas contribution to revenue so far was at
34 per cent.
According to the report, the improvement recorded so far is due to the steps taken by the service to increase tax collection.
The report stated, “The FIRS has adopted e-services as a medium
to achieving innovation, convenience and transparency of its operations
so as to ensure that every effort is made to improve efficiency in
collection and tax administration.
“A 45-day window from October 5 to November 2017 was given to
taxpayers with tax liabilities to come forward and pay 25 per cent of
the agreed tax liability, spreading the balance liability, while waiving
penalty and interest.
“The FIRS, in collaboration with Corporate Affairs Commission,
Central Bank of Nigeria and Nigeria Customs Service, undertook a massive
nationwide registration exercise of new taxpayers in 2016. We are also
carrying out a sector-by-sector tax audit, which has increased
compliance across all tax types and taxpayers’ categories. Over N8bn has
been recovered through this.
It added, “Also, the Voluntary Assets and Income Declaration
Scheme encourages voluntary disclosure of previously undisclosed assets
and income for the purpose of payment of all outstanding tax liabilities
to boost revenue collection.
“All this will help improve the low tax ratio from six per cent
to 15 per cent by 2020, and curb the use of tax havens for illicit
funds flow and tax avoidance.”
According to the report, the service is instrumental to the signing
of a Bilateral Taxation Agreement on double taxation on income and
capital gains.
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