FIRS rakes in N3.3tr tax revenue in 2016
The Federal Inland Revenue Service (FIRS) raked N3.30 trillion tax revenue into the nation’s coffers.
Executive Chairman of the FIRS Mr. Tunde Fowler made this closure in Abuja Monday at training for journalists on tax reporting.
Fowler praised the efforts of the Service for rising over N3.3 trillion at a most trying period in the country’s economic history.
Fowler stated that the FIRS performed the feat of “a N3.303 trillion collection in a challenged economy– in a year when oil prices dropped less than $50 dollars a barrel for over nine months and when the value of stocks on the Nigerian Stock Exchange (NSE) slid and purchasing power was slim.
The average oil price was about $100 dollars per barrel between 2012 and 2015.”
To do this, the Service he said implemented “waiver of Interest and penalty as part of the efforts of the Service to promote voluntary compliance and shield taxpayers from the burden of carrying forward tax liabilities that rose from penalty and interest.”
FIRS he said “successfully implemented a waiver of interest and penalty for three years (2013 to 2015). The Service, by this entirely new idea has so far realized N27 billion.”
The FIRS boss also disclosed that by expanding the tax next with a massive nationwide registration exercise of new tax payers, “the result is the registration of 814,000 additional taxpayers by December 2016 and 3.4 million taxpayers by State Internal Revenue Services (SIRSs). By December last year, Nigeria has a National Tax Roll of 14 million.”
The federal tax revenue collector also attributed last year’s tax revenue realization to the ease of tax payment.
According to Fowler, “the convenience, proximity and ease of tax payment, compelled the taxpayers to file their tax returns at the FIRS offices nearest to them.
This novel idea has increased compliance as it eased the burden of taxpayers who have had to travel from far places to pay their taxes.”
Another reason for the 2016 tax performance Fowler said was the “improved collaboration with the office of the Accountant-General of the Federation to ensure that MDAs remit taxes such as Withholding Tax (WHT) Value Added Tax (VAT) promptly through the Government Integrated Financial Management Information System (GIFMIS).”
GIFMIS is an IT based system for budget management and accounting used to improve Public Expenditure Management processes, enhance greater accountability and transparency across Ministries and Agencies.
Other factors that aided the FIRS in raising the impressive N3.3 trillion tax revenue Fowler said included collaboration with the Joint Tax Board and States’ Internal Revenue Services on several fronts such as Taxpayer Enlightenment, Tax Enforcement and registration of new taxpayers; Tax Education, Enlightenment and Media Campaigns; Inter-agency Collaboration, through collaborative handshake with other government agencies such as the Nigeria Customs Service, Federal Road Safety Commission, (FRSC), the Immigration Service and the Corporate Affairs Commission are being strengthened.”
Integrated Stamp Duties Services (ISDS) portal for ease of tax payment “was introduced by the Service for a purpose-built Stamp Duty portal that facilitates the online assessment and payment of Stamp Duties by Nigerian taxpayers. A Stamp Duties Co-ordination was created as part of the standard FIRS structure, while Commissioners of Stamp Duties were appointed” Fowler said.
The FIRS, Fowler said “is convinced that with progressive application of technology, persuasion and enforcement on recalcitrant taxpayers, and partnership with key stakeholders like the press, we will collect enough revenue for the nation in 2017.”
One of the facilitators, Mr. Mark Abani used the opportunity to reiterate that it is illegal for state and local governments to mount road block on the highway for the purposes of collecting tax from travelers.
He enjoined members of the public to stand up for their rights and resist such illegality by refusing to make such payments and seek legal redress in court.