The Chairman, Federal Inland Revenue Service (FIRS), Tunde Fowler has announced that the agency is targeting N8.3 trillion from the collection of various taxes in 2019.
This is just as it said it collected a total of N5.320 trillion in 2018.
Fowler, who made the announcement in Lagos yesterday at a retreat: “Parliamentary Support for Effective Taxation of the Digital Economy” said the target was achievable with the support of all tax payers as well as all the stakeholders.
The amount collected is the highest revenue ever generated by FIRS in history. The highest in FIRS was N5.07 trillion generated in 2012.
FIRS’ generation of N5.3 trillion is significant as it was at a period when oil prices averaged $70 per barrel. Oil price was at an average of $100 to $120per barrel between 2010 and 2013.
Non-Oil component of the N5.320 trillion is N2.467 trillion (53.62 per cent), while oil element of the collection is N2.852 trillion (46.38 per cent. From audit alone, FIRS collected N212,792 billion from 2278 cases with a huge reduction in audit circle.
He attributed the achievements to technological initiatives introduced by the firm in delivering taxpayers’ services such as e-payment channels, e-receipts and Value Added Tax (VAT), among others.
Reviewing FIRS 2018 operations and achievements, the Chairman said VAT collection was on a steady increase since 2015.
He said FIRS collected N1.11 trillion through VAT in 2018, N972.30 billion in 2017 and N828.19 billion in 2016.
Fowler stated that various initiatives were implemented by FIRS to enhance tax administration and make taxation as easy as possible. 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.
“E-stamp duties collection is on a steady increase. In 2018, the FIRS collected N15.66 billion.
“The above collected in 2018 surpassed the N10.9 billion in 2017 and N5.6 billion in 2016,” Fowler said.
He noted that taxation was the most sustainable of all government revenue sources.
“There cannot be any serious discussion on diversification of the economy without reviewing the country’s tax regime for optimal performance.
“FIRS shall continue to engage stakeholders, especially the legislative arm of government in order to gain invaluable support that will drive tax compliance,” Fowler said.
The Chairman, House Committee on Finance, Hon. Babangida Ibrahim, commended FIRS for the achievements recorded over the years.
Ibrahim said the theme of the meeting was timely and important because of the efforts by the government to diversify the economy.
He said the National Assembly would remain committed to the nation’s growth and development and assured FIRS of its support in the delivering of its mandate.
