Nigeria Targets 8 tril Naira tax Revenue in 2019 ~FIRS
By Olumidagreaton January 8, 2019
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Nigeria plans to collect up to 8 trillion naira in taxes this year compared with around 5.32 trillion collections in 2019, chief executive of Federal Inland Revenue Service (FIRS) Babatunde Fowler has said.
Fowler said the increase in tax collection last year was significant because it was generated during a period of low oil revenue income for the country.
According to him, the highest the service has ever generated prior to last year was 5.07 trillion naira generated in 2012 when oil revenue was high and price of crude oil ranged between $100 to $120 per barrel.
He put the non-oil component of the total taxes collected last year at 2.467 trillion naira, representing 53.62 percent, while oil contributed 2.852 trillion naira , about 46.38 percent of the total collectted. He said the service collected 212.79 billion naira exclusively from audit, a figure that arose from 2,278 cases, and with a huge reduction in audit circle.
“While we have been steadily increasing revenue collection over the years, our cost of collection has actually been going down. In 2016, we collected 3, 307 trillion naira; in 2017, we collected 4, 027 trillion naira and in 2018, we collected 5, 320 trillion naira.
“Meanwhile, the cost of collection as a percentage of actual taxes collected has been reducing. In 2016, it was 2.6 per cent. In 2017, it was 2.49 per cent, while in 2018 it was 2.14 per cent.”
He attributed the steady rise in the collection figures to a series of initiatives adopted and implemented by the Service to enhance tax administration and ease tax payment.
Among these is the deployment of ICT initiatives, which enable taxpayers to pay taxes from anywhere in the world and at any time.
He said 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, e-Stamp Duty and e-Tax Clearance Certificate. Taxpayers can now also choose the tax office where they would like to conduct their tax transactions.”