FIRS Generated N12.7trn in 3 years

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In what seem to be an improvement of tax system in the country, the Federal Inland Revenue Service (FIRS) grosses about N12.7 trillion in tax receipts within three years.

In a statement by the Chairman of FIRS, Mr Babatunde Fowler, disclosed that this was made possible by the tax authority’s technological initiatives in delivering taxpayers’ services, particularly its automation of core tax processes.

Fowler stated this at the stakeholders’ Retreat in Lagos recently

A breakdown of the figure shows that the receipts grew from N3.308 trillion in 2016 to N4.028 trillion in 2017 and capped it up with an unprecedented collection of N5.321trillion in 2018.

Fowler, who explained that “taxation is the most sustainable of all government revenue sources,” said there could not be any serious discussion on diversification of the economy without reviewing the country’s tax regime for optimal performance.

On the tax processes automated, he listed them as
auto Value Added Tax (VAT) collection, Integrated Tax Administration System (ITAS), Government Information Financial Management Information System (GIFMIS) and State Offices of Accountant General Platform (SAG).
On the VAT collection, the FIRS boss stated that there was 31 per cent increase, year on year, in VAT collection in the banks that have gone live between January 2017 to December 2018, adding that N25billion was collected so far.
“Automated the deduction at source and remittance of VAT and Witholding Tax (WHT) from state governments contract payments directly to FIRS’s account yielded N13billion so far”, he said.

As for e-Stamp Duty, Fowler said the initiative made tax payment easier for taxpayers, adding that “when the platform went live, the monthly stamp duty payments grew from an average of N500million to N1.1billion monthly. E-Stamp duties collection is on a steady increase.

In 2018, the FIRS collected N15.66billion. The amount collected in 2018 has already surpassed that of 2017 N10.9billion, and N5.6billion in 2016. The enhanced generation of VAT collection is on a steady increase. In 2018, the FIRS have collected N1.108trillion. The above collected in 2018 surpassed that of  2016, which was N828.19billion, and on course to surpass 2017 figure of N972.3billion. VAT has increased by 25 per cent since 2015,” Fowler stated.

On the tax amnesty, which was initiated in 2016, he explained that the programme attracted over 3000 applications for waiver of interest and penalty.

He added: “The programme resulted in the payment/collection of over N68billion out of about N96.2billion liability established from the exercise. Waiver of penalty and interest were granted to ease tax burden and cost of enforcement on affected taxpayers under the Voluntary Assets and Income Declaration (VAIDS).

“VAIDS was initiated by the Federal Ministry of Finance and the FIRS received over 5122 applications under the Scheme. The Scheme has resulted voluntary declaration of over N92billion liability with over N54billion paid so far by companies.”

As for the FIRS’ compliance strategies on customer with N1billion banking turnover exercise, Fowler said that FIRS wrote to all commercial banks last May, requesting for a list of companies, partnerships, and enterprises with a banking turnover of N1billion and above.

“This activity is aimed at ascertaining those companies that are complaint with the tax laws and those that are not complaint. So far, non-compliant organisations have paid about N21.75billion.

 

The Caption Photo: The Federal Inland Revenue Service (FIRS), the Chairman, Mr Babatunde Fowler


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