The Federal Inland Revenue Service
(FIRS) on Tuesday disclosed that its
proposed revenue target for the 2016
fiscal year is N4.957 trillion, which
is N385 billion higher than the
N4.572 trillion in 2015.
Of the N4.957 trillion for 2016, non-
oil revenue will account for 80 per
cent of the gross target.
Of this, Value Added Tax (VAT) will
account for N2 trillion, representing
40.35 per cent, while Company
Income Tax (CIT) is expected to rake
in N1.877 or 37.87 per cent .
Both CIT and VAT are projected to
account for 80 account of FIRS’
revenue haul in 2016.
The Executive Chairman of FIRS, Mr.
Tunde Fowler, who unveiled the
figures in Abuja at the 2016
corporate strategy retreat, gave
other details of the revenue target
for 2016 as Petroleum Profit Tax
(PPT) N800 billion; CIT
N1,877trillion; Education Tax (ET )
N180 billion; Consolidated Tax N80
billion and National Information
Technology Development Endowment
Fund (NITDEF) expected to
contribute N20 billion.
The retreat with the theme:
‘Optimising Non- Oil Tax Revenue
Collection Through Compliance and
Enforcement,’ attracted top
management officers of FIRS and
states’ internal revenue board
chairmen.
Of the revenue target of N4.572
trillion for last year, FIRS was able
to rake in N3.743 trillion due to
significant drop in oil taxes, just as
it was short of meeting the target for
non-oil taxes, VAT and CIT.
Fowler, who was a former tax
administrator for Lagos State,
expressed confidence that FIRS
under his leadership would not only
meet the revenue target but surpass
it, even as he urged the staff to
brace up for the task ahead.
According to him, payment of
bonuses will be tied to
performances, adding: “This is
necessary as we will introduce an
enhance system of performance to
ensure that we all meet our targets.
Since our ability to fund the
organisation is directly tied to our
collection.”
As part of the enhanced performance
system, he disclosed that there was
an increased threshold for payment
of performance bonus from 60 per
cent to 70 per cent .
“It should be noted that if indeed
we are to receive performance
bonuses , then our performance
target should be met 100 per cent,”
he stressed.
The need for FIRS to review its
strategy for revenue generation from
oil to non- oil, he said, became
imperative with the challenge that
comes with low oil prices and
dwindling revenue from oil sources.
In order to achieve the objective set
for 2016 revenue target, the FIRS’
chief executive said the agency
would device strategy for voluntary
compliance.
The Minister of Budget and National
Planning, Senator Udoma Udo
Udoma, in a goodwill message, noted
that the revenue projections for
2016 budget were articulated by
government in close collaboration
with FIRS and other revenue
generating agencies.
Udoma, who was represented by the
Permanent Secretary in the ministry
Mrs. Fatimah Nana Mede, said
increased non- oil revenue would be
achieved through multi-faceted
channels.
These, he said, included a
comprehensive audit, compliance to
spending guidelines by Government
Owned Enterprises (GOEs ) with a
view to enhancing independent
revenue remittance from N489.29
billion in 2015 to N1.5 trillion in
2016 as well as the full
implementation of the Treasury
Single Account (TSA) to generate
N900 billion operating surplus from
the Central Bank of Nigeria (CBN) ,
Nigerian National Petroleum
Corporation (NNPC) and the Nigerian
Maritime and Safety Agency
(NIMASA).
Others include broadening tax base
and improving efficiency in tax
refined collection expected to raise
VAT collection to N1.42 trillion in
2016 from N1.34 trillion in 2015 and
funds recovery in the region of
N162.43 from NPDC.


www.thisdaylive.com/articles/firs-targets-n5tn-revenue-in-2016-non-oil-revenue-to-account-for-80-of-earnings/230955/

Good, The Niger Deltans Can Drink Their Oil For Now..

Hmmmmm

It is now clear that the fall in the price of oil is a blessing in disguise for Nigeria.

Subsidies on petroleum product are gone

Agriculture is getting more attention

Solid mineral is taken center page

Tax collection is the latest success

Plus other sources of income like stamp duty, etc

In the next 3 years, Nigeria shall celebrate.

This is good.

This is how our budget should be financed. We still need oil for forex though but with crashing oil prices customs and FIRS should step up

I believe we can still do better, i read this article on how we can generate 30 trillion naira anually. Link below

saharareporters.com/2013/05/29/firs-can-generate-n30trillion-annum-stref-john-nnorom

Obiagelli:
I believe we can still do better, i read this article on how we can generate 30 trillion naira anually. Link below

saharareporters.com/2013/05/29/firs-can-generate-n30trillion-annum-stref-john-nnorom

Doing better will take time. First you have to bring in new companies not paying and look for those who under pay. It is a gradual process and for this year, it will be a start

Not a good news for naysayers especially the IPOBians who wishes that Nigerian economy comes to ground under the able leadership of President Muhammadu Buhari.
If leakages are block and the tax regime is expanded with strict compliance, we may not need to sell a single drop of crude oil to fund the 2016 budget.
The non oil revenue alone can make up the shortfalls in the crude oil market.

For me instead of borrowing we can't we just increase our VAT to 15%, at 5% our VAT is among the lowest in the world and that's not good.
If South Africa with GDP of $400bn can generate over $70bn in revenue.... Then I can't get why we with a GDP of over $500bn can't generate $50bn from the non oil sector
This doesn't add up
Nigerian government need to review taxing Nigeria

Mynd44:

Doing better will take time. First you have to bring in new companies not paying and look for those who under pay. It is a gradual process and for this year, it will be a start

I agree, i just find that article really interesting, especially that it says it is doable in 12 months

Mynd44 are you an economist?

Aufbauh:
Not a good news for naysayers especially the IPOBians who wishes that Nigerian economy comes to ground under the able leadership of President Muhammadu Buhari.
If leakages are block and the tax regime is expanded with strict compliance, we may not need to sell a single drop of crude oil to fund the 2016 budget.
The non oil revenue alone can make up the shortfalls in the crude oil market.

U can neva comment witout adding IPOB or wateva in ur comments.R dey ur worst nytmare?

Accountants in trouble!

mrvitalis:
For me instead of borrowing we can't we just increase our VAT to 15%, at 5% our VAT is among the lowest in the world and that's not good.
If South Africa with GDP of $400bn can generate over $70bn in revenue.... Then I can't get why we with a GDP of over $500bn can't generate $50bn from the non oil sector
This doesn't add up
Nigerian government need to review taxing Nigeria

I agree that we should at least tripple VAT, currently we earn about 900 billion from VAT.

businessdayonline.com/2015/02/vat-fetches-treasury-n803bn-in-2014/#.VPN4YfnF-So

I pray for the manifestation of this. The disadvantaged will surely work against it though, thus mailing for a thunder strike from above.

Great

Aufbauh:
Not a good news for naysayers especially the IPOBians who wishes that Nigerian economy comes to ground under the able leadership of President Muhammadu Buhari.
If leakages are block and the tax regime is expanded with strict compliance, we may not need to sell a single drop of crude oil to fund the 2016 budget.
The non oil revenue alone can make up the shortfalls in the crude oil market.

Instead of Nigeria grinding to a halt their miserable lives will crash and halt! Long live Nigeria! Down with the thieves, down the dividers!!

Are you one of them? A winner does not have nightmare.
Blame those who have brought themselves to public ridicule through their public support for impunity,corruption and ill vices.

MISSNORA:
U can neva comment witout adding IPOB or wateva in ur comments.R dey ur worst nytmare?

We may not necessarily need to increase our VAT as this will indirectly put pressure on the ordinary low income Nigerians. All we need is an expansion of the tax regime and strict compliance. The CIT is way below performance and if taxes are pay appropriately the revenue will rise geometrically.

mrvitalis:
For me instead of borrowing we can't we just increase our VAT to 15%, at 5% our VAT is among the lowest in the world and that's not good.
If South Africa with GDP of $400bn can generate over $70bn in revenue.... Then I can't get why we with a GDP of over $500bn can't generate $50bn from the non oil sector
This doesn't add up
Nigerian government need to review taxing Nigeria

Aufbauh:
We may not necessarily need to increase our VAT as this will indirectly put pressure on the ordinary low income Nigerians. All we need is an expansion of the tax regime and strict compliance. The CIT is way below performance and if taxes are pay appropriately the revenue will rise geometrically.

How much pressure will 200% increase in vat put on ordinary Nigerians

Babatunde Fowler doing what he is known to do best.
I just hope some of my brothers won't complain that , they are being targeted since most of them are into businesses.
Time to deviate from oil sector is now, tomorrow may be too late.


PMB is Working
Wailer is complaining

Obiagelli:

How much pressure will 200% increase in vat put on ordinary Nigerians

Hope you know that vat is an indirect tax on the domestic consumption of goods and services.
That is why i put it to be an indirect effect which may not be visible but yet affect the low and mid income earners anytime they try to pay for valued consumable goods from their meagre income. Except you want to isolate them from such goods and services which is not possible.

NgeneUkwenu:
Good, The Niger Deltans Can Drink Their Oil For Now..

Easier said than done

Aufbauh:


Hope you know that vat is an indirect tax on the domestic consumption of goods and services.
That is why i put it to be an indirect effect which may not be visible but yet affect the low and mid income earners anytime they try to pay for valued consumable goods from their meagre income. Except you want to isolate them from such goods and services which is not possible.

I know what vat is, i am asking how much burden will 10 or 15% vat put on the common man?
A packet of soap will jump from 10 naira to 15naira at most

Aufbauh:


Hope you know that vat is an indirect tax on the domestic consumption of goods and services.
That is why i put it to be an indirect effect which may not be visible but yet affect the low and mid income earners anytime they try to pay for valued consumable goods from their meagre income. Except you want to isolate them from such goods and services which is not possible.

An upside is that FMCG companies will begin to compete on price, and with the crackdown on importation of such petty goods as well as reduced cost in factors of production (e.g improved electricity to substitute expensive diesel generators), the impact of the VAT increase could be absorbed by lower prices in the long run.

By the turn of this year, good results from the president's actions will have started to manifest.

PMB inherited a dying economy and he needs time to resuscitate it.

Beautiful development. They need to find a way to channel funds from the informal sector. All those my igbo brothers floating companies left, right and center (esp in the east) need to be captured by the system.
The FIRS has a lot of work to do managing the collection and enforcement of tax compliance. Lagos and Ogun have been great so far, but they'll need to expand their efforts to the other states.

Hmmm

this will make the populace keep their government under toes
because the era of free money is gone and most of the money the government will be using will be from the hard earn money if individuals.....

Obiagelli:

I agree that we should at least tripple VAT, currently we earn about 900 billion from VAT.

businessdayonline.com/2015/02/vat-fetches-treasury-n803bn-in-2014/#.VPN4YfnF-So

Increasing taxes is inevitable, we don't pay enough taxes in this country, especially the very rich. We need to increase taxes, yes, but we cannot do that before sanitizing the tax agency, that place reeks of corruption. Just last Monday a deputy director at the Zonal Tax office at Katampe, Abuja was picked up by the EFCC for demanding a bribe of #5million from Baze University. My contacts at FIRS, told me that, the sum wasn't even the total money collected. They said that the FIRS staff had already collected a lot of money from the university so as to lower their taxes and that the #5million was merely the outstanding balance of the bribe they were supposed to collect. Earlier this year a director was discretly asked to return hundreds of millions by the EFCC. Several cases of theft abound at the FIRS hence, I think Nigerians will not be willing to pay more taxes if that place is not cleaned up; for now nobody is willing to 'donate' more money to fund the lavish lifestyle of Nigerian tax officials.

I see a lot of Business and Enterprise accounts going redundant as the deposits may be diverted elsewhere...job losses in the banking sector is imminent.