FIRS collects record N10.1trn tax in 2022

The Federal Inland Revenue Service (FIRS) has announced that it collected over N10 trillion in tax revenue in the year 2022, the highest tax collection ever recorded in its history.

Special Assistant Media and Communication to the FIRS helmsman, Johannes Oluwatobi Wojuola, in a statement Monday, said the collection represents over 100 per cent leap from the tax collected by the Service in 2020—the first year of the current management of the Service. 

It is the first time that the FIRS will cross the N10 trillion mark in tax revenue collection.

The amount represents 96 per cent of its collected target for 2022. 

In 2021, FIRS achieved a record tax collection of N6.405 trillion. 

In a 2022 performance update report signed by the FIRS boss, the Service collected a total of N10.1 trillion in both oil (N4.09 trillion) and non-oil (N5.96 trillion) revenues as against a target of N10.44 trillion. 

A breakdown revealed that Companies Income Tax (CIT) contributed N2.83 trillion; Value Added Tax (VAT) N2.51 trillion; Electronic Money Transfer Levy N125.67 billion and Earmarked Taxes N353.69 billion.

According to the report, Non-oil taxes contributed 59 per cent of the total collection in the year, while oil tax collection stood at 41 per cent of total collection. 

The tax revenue agency clarified that the sun of N146.27 billion represents the itotal value of certificates issued by the Service to private investors and NNPC for road infrastructure under the Road Infrastructure Development Refurbishment Investment Tax Credit Scheme created by Executive Order No. 007 of 2019. 

The report further added that the amount collected iis exclusive of tax waived on account of various tax incentives granted under the respective laws, which amounted to N1,805,040,163,008.

Experts said the reforms introduced by the Muhammed Nami-led management of the Service between 2020 to 2022 has manifested itself in the tax revenue generated.  

Commenting on the feat by the Service, the Executive Chairman, said possible through dogged implementation of strategic reforms over the past two years; a renewed commitment by officers of the Service, accompanied with a boosted morale; as well as the innovative deployment of technology for automation of both tax administration and operational processes.

“This collection was possible through collaboration with our stakeholders, from our colleagues at the Executive branch of government, to the members of the judiciary, to our brothers and sisters at the National Assembly, as well as the tax advisory committee, professional bodies, unions, and most crucially our taxpayers.”

Speaking on the outlook for 2023, Mr. Nami stated that the Service would build on the current reforms, achieve full automation and continue to establish a resilient Service that would continue to provide sustainable tax revenue to fund the government. 

“We intend to maintain, and even improve on the momentum in 2023. 

“Our goal is to identify more areas where we can improve on in the delivery and efficiency of our collection; and plug loopholes, while deploying innovative reforms in data and artificial intelligence,” he said.