Economy

FIRS records 7 per cent increase in target, collects N1.2trn in Q1

The Federal Inland Revenue Service (FIRS), says it has recorded an 7% increase in its collection target for the first quarter of 2020 (Q1 2020) compared to the same period in the last fiscal year-Q1 2019.

The Service said it collected N1,123,377,654,135.14 in the first quarter of 2020 compared to Q1 2019 collected of N1,046,889,787,060.27.

A statement from the FIRS said: ” A massive 568% increase in Capital Gains Tax from N96,408,740.90 in Q1 2019 to N643,935,849.06 in Q1 2020 gave the Service’s revenue its biggest lift.”

This, the FIRS said, is “as a direct result of blockage of leaks in that revenue flow by the wide-ranging reforms launched at the FIRS by its newly appointed Executive Chairman, Mr. Muhammad Nami, immediately he assumed office in December 2019.”

The Service also recorded a 522% increase in collection from the NITDEF to bag N690,532,855.85 in Q12020, compared to N111,037,797.16 in Q1 2019.

Also in the period under review, Gas Income Tax increased by 286% in Q12020, which amounted to N11,491,627,575.89 compared to N2,977,345,332.31 raked in in Q12019.

Company Income Tax (CIT) collected in Q1 2020 jumped 135% to N95,733,194,644.91 from the corresponding figure of N40,696,980,658.52 recorded in Q1 2019.

Stamp Duty collection in Q12020 is N4,602,037,497.81, a 36% increase compared to the Q12019 figure of N3,386,648,663.85

In the education sector, the FIRS recorded an 81% increase in its collection of Education Tax, N13,102,045,604.74 was raked in in Q12020 compared to N7,229,644,397.68 in Q12019.

Both Nigeria Customs Service (NCS) and Non-Import VAT also increased by 11% in Q12020in to N63,296,684,819.79 and N261,245,617,218.98 respectively from the Q12019 figures of N57,008,866,617.53 and N236,030,481,054.83.

However, Petroleum Income Tax, Withholding Tax and Personal Income Tax all took a deep in the period under review, a development tax analysts attributed to fluctuations in the price of crude oil in the international market as well as the interregnum witnessed between passing the 2019 Finance Act into law and its coming to effect on February 1, 2020.

Moving forward the FIRS was optimistic that its “on-going reforms and deployment of more ICT platforms at the FIRS take root in Q22020, the Service expects a brighter outlook in revenue collections.”

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