How FIRS Plans To Raise N4.9trn Revenue

The Federal Inland Revenue Services, FIRS under the leadership of Babatunde Fowler, the executive chairman has raised non-oil revenue generation to the federal government coffers to an all-time high. Against a backdrop of N4.957trillion tax revenue target the agency handed down to itself for 2016, it is clear that its monthly remittances to the Federation Accounts Allocation Committee, FAAC have raised the bar of tax receipts in the economy.

Wahab Gbadamosi, spokesman of FIRS told LEADERSHIP Sunday that the Service has been meeting up to 80 per cent of the target by monthly breakdown up to June.

The tax agency plans that Value Added Tax,VAT would account for N2 trillion, representing 40.35 per cent of the total target, while company income tax, CIT would account for N1.877 trillion or 37.87 per cent of the target. In specific terms, these two taxes will provide, approximately, 78 per cent of FIRS’ total revenue target of 2016 leaving 22 per cent of the target to be shared between Petroleum Profits Tax, PPT, Education Tax, EDT and National Information Technology Development Levy, NITDEL. In its blueprint, the FIRS earmarks about 50 per cent increment in CIT using a base of N1.2 trillion. This puts the CIT target at a minimum of N1.8 trillion, and at least 250 per cent increment in VAT collection using a base of N800 billion; a minimum of N800 billion as PPT collection, and a minimum of N280 billion from other taxes.

In the month of June, the Service yielded N165billion to the Federation Account, out-performing both the NNPC and the Nigerian Customs. This feat from FIRS saw the month’s amount for sharing among the three tiers of government go up from N281.5 billion shared in April, N305.13 billion shared in May and N559.032 billion in the month of June.

Findings by our correspondent showed that the tax agency is making much effort at ensuring compliance, including undertaking a nationwide VAT and Withholding Tax monitoring exercise and nationwide tax payer registration exercise anchored by the FIRS Federal Engagement and Enlightenment Tax Teams, (FEETT). The FIRS is also collaborating with relevant stakeholders to ensure effective enforcement of the tax regime just as it is equally expanding its dragnet to capture tax evaders.
A document from the Service which was made available to LEADERSHIP Sunday indicated that between December 2015 and now, the FIRS has stepped up its tax enforcement duties, shutting down over 40 company offices across the country.
Part of FIRS’s efforts at growing tax revenue, according to the document, is its collaboration with the Ministry of Budget and National Planning in designing strategies for enhancing non-oil revenues for the country.

Tax contributes only seven per cent to Nigeria’s Gross Domestic Product (GDP), a situation tax professionals have blamed on recalcitrant attitude of taxable individuals and companies to tax payment and weak implementation of tax regulations on the part of tax authorities.

According to Fowler, only one in every three of corporate organisations in the country pays tax. He said FIRS has resolved to have at least 99.9 percentage success level of compliance. What that means is that every individual and corporate organisation at both the state and federal level that is within the tax net must pay the appropriate tax.
On assumption of office, Fowler directed a nationwide VAT and WHT compliance check. The result of this exercise saw a collection of over N122 billion in three months. The initiative, directly overseen by the office of the executive chairman also recorded a registration of 565,743 new corporate taxpayers as at March, this year.

LEADERSHIP Sunday recalled that while addressing the leadership of the Nigerian Economic Summit Group, (NESG) who paid a courtesy visit to her office in Abuja last week, the minister of finance, Mrs Kemi Adeosun revealed that the federal government was reworking the country’s tax system. “We are already overhauling our tax policy. We want to have a realistic picture of tax,” she said.

The FIRS success master plan includes ensuring a minimum of 90 per cent compliance across all tax types and all taxpayer categories, to be achieved by increased focus on sector based audits to ensure that all audit backlogs are cleared

It also included ensuring maximum possible registration of taxpayers, through a nationwide tax registration drive, which has commenced and which is expected to achieve a target of at least 500,000 previously unregistered campanies by end of 1st quarter, 2016. As at March this year, 565,743 corporate companies have been registered, out of which 2000 have paid various tax types totalling N 395,771,462.93. This strategy is driven by improved use of technology, collaboration with state boards of internal revenue and other relevant state and federal agencies such as Corporate Affairs Commission, Central Bank of Nigeria, Nigeria Customs Service, Banks, tax consultants and private audit firms.

The tax agency is also deploying the use of technology to block leakages and improve efficiency in collection through introduction of auto-VATCollect platform for VAT collection in all key sectors such as telecommunications, power, hospitality, e-commerce and financial services. It is also putting in place Government Integrated Financial Management Information System (GIFMIS)—an electronic platform which will ensure that VAT and WHT is collected from all government contracts and transactions at source.
The tax agency plans to strengthen tax administration by appointing new sector heads to drive tax compliance in different sectors. This will ensure specific focus on the relevant sectors, improve accountability and performance management as well as ensure targets are understood and achieved within agreed timelines. State coordinators have been appointed for each state of the federation, with a coordinator covering a maximum of three states. This will further strengthen tax administration across the nation and build on existing collaborative efforts with State Boards of Internal Revenue Service (SBIRS)
Part of the strategies included plans to improve performance management by a strategic use of reward for performance and sanction for non-performance. Leakages within the tax administration will be identified and blocked, while rewards will be paid to whistle blowers as provided under the FIRS Act.

There will be increased use of taxpayer education, publicity and enlightenment to achieve improved compliance. The strategy is to complement Federal Engagement and Enlightenment Tax Team (FEETT) which has been set up to carry out continuous engagement and enlightenment of taxpayers nationwide.

http://www.firs.gov.ng/Lists/FIRS%20Events/DisplayEvents.aspx?ID=53

4.9trillion naira??.........on paper or real money?

Please be paying your TAX or the only reason you have for criticizing Gov.is you a Hypocrite.

9jii:
Please be paying your TAX or the only reason you have for criticizing Gov.is you a Hypocrite.

What has the government been doing with the previous tax payments being deducted from workers' salaries?

rummeh:






4.9trillion naira??.........on paper or real money?

Wallahi you don't know how to be the FTC.how you go quote d whole thing?
There are a lot of nairalanders struggling with bad network just get this opportunity to tell us something new or ask for good wishes.
You need to apologize to them.
It's unacceptable to waste what someone holds dearly.
I was never or want to be part of the FTC struggle but it's a good to stand up for someone.

9jii:

Wallahi you don't know how to be the FTC.how you go quote d whole thing?
There are a lot of nairalanders struggling bad network just get this opportunity to tell us something new or ask good wishes.
You need to apologize to them.
It's unaccountable to just waste what someone holds dearly.
I was never or want to be part the FTC struggle but it's good to stand up for someone.

Is tha your challenge

Giving the dog hope daily with utopian figures that doesn't match the reality on ground

una never see anything....

Ellidude:
What has the government been doing with the previous tax payments being deducted from workers salary?

First you need to ask the governments.
And there are Government's projects that you are seeing and ones you don't see.

9jii:
First you need to ask the governments. And there are Government's projects that you are seeing and ones you don't see.

LOL. Honestly, I don't understand you.

Ellidude:
LOL. Honestly, I don't understand you.

?

Forecasting is good but where will they see companies to collect CIT because if the news that we are hearing is anything to go by, that abt 242 companies close shop then am afraid it will b one hell of a task.

Internally generated tax has never been a source of wealth to any nation especially a corrupt Nigeria plagued by lame leadership

rummeh:

4.9trillion naira??.........on paper or real money?

that is to tell u the extent of corruption and free money of the past, the effect of ineffectual buffoonism. God bless fowler and pmb

Ellidude:
What has the government been doing with the previous tax payments being deducted from workers salaries?

ask ineffectual buffoon and pdp for 16Yrs,

BlackSeptember:
Giving the dog hope daily with utopian figures that doesn't match the reality on ground

d reality is that FAAC share more than 500b naira in june from a mere 165b naira d previous month without oil money

Mylove55:
d reality is that FAAC share more than 500b naira in june from a mere 165b naira d previous month without oil money

At what exchange rate

Useless country...we all know that half of the taxes generated were from Igbos. Likewise with Nigerian customs. Hausa-Fulani and particularly yorruba don't import Shiit.

2016 Budget in September...cos we are in September as far as I'm concerned. Who are they deceiving anyway?

Crieff:
2016 Budget in September...cos we are in September as far as I'm concerned. Who are they deceiving anyway?

Funny.

welcome to change

9jii:
Please be paying your TAX or the only reason you have for criticizing Gov.is you a Hypocrite.

Are people who lost their jobs suppose to pay tax?

MadamExcellency:



Are people who lost their jobs suppose to pay tax?

Yes.
If u are hard working u can't get fired

Yet we are almost in September 2016

Na God go sama una nyash.

9jii:


Yes.

If u are hard working u can't get fired

Read the comment you replied again and this time slowly before responding

Are people who lost their jobs (retrenched in banks and many other local/multinational companies including more than 400,000 sacked by FG (immigration/customs/DSS etc) still be paying taxes?

MadamExcellency:


Read the comment you replied again and this time slowly before responding

Are people who lost their jobs (retrenched in banks and many other local/multinational companies including more than 400,000 sacked by FG (immigration/customs/DSS etc) still be paying taxes?

These are all based on hearsay. You didn't have an idea about what's happening around you.
Don't just be listening to what you wanted to hear

9jii:

These are all based on hearsay. You didn't have an idea about what's happening around you.
Don't just be listening to what you wanted to hear

Who the hell are you to tell me what is happening in my closet?

When you want to know the true state of the economy, always ask me. I am not your regular Nairalander. I am here to inform and teach liberals and the independents.

Bye

MadamExcellency:


Who the hell are you to tell me what is happening in my closet?

When you want to know the true state of the economy, always ask me. I am not your regular Nairalander. I am here to inform and teach liberals and the independents.

Bye

Surely u don't know anything about Economy.
I can bet on that.
But it's good if you don't expose yourself and Run.bye

Naija9090:
Useless country...we all know that half of the taxes generated were from Igbos. Likewise with Nigerian customs. Hausa-Fulani and particularly yorruba don't import Shiit.

another hater so only igbo's import into Nigeria. No wonder we have a lot of fake products around now i see the reason why

See people taking panadol for another person headache.

MadamExcellency:


Read the comment you replied again and this time slowly before responding

Are people who lost their jobs (retrenched in banks and many other local/multinational companies including more than 400,000 sacked by FG (immigration/customs/DSS etc) still be paying taxes?

When did govt sack400k workers make una small small dey lie

Nigeria should just do hard reset