N10 Trn Revenue: MPAN Hails FIRS for Ousting Own Records
Press Statement by the Multimedia Publishers Association of Nigeria (MPAN) on the increased revenue collection by the Federal Inland Revenue Service (FIRS).
The Federal Inland Revenue Service (FIRS) has announced that it collected over N10 trillion in tax revenue in the year 2022, as against a target of N10.44 trillion, the highest tax collection in its history.
This is no doubt a laudable achievement, and all patriotic Nigerians must commend this.
In spite of the global economic crunch and Nigeria’s dwindling economy, the FIRS, led by it’s Executive Chairman, Muhammad Nami, has demonstrated that even in the midst of many difficulty, with determination and commitment, nothing can stop anyone from achieving a set goal.
The Service had in its FIRS 2022 Performance Update, released to the public on Monday, after the executive chairman’s meeting with President Muhammadu Buhari, explained that; ”Companies Income Tax contributed N2.83 trillion; Value Added Tax N2.51 trillion; Electronic Money Transfer Levy N125.67 billion and Earmarked Taxes N353.69 billion.
“Non-oil taxes contributed 59 per cent of the total collection in the year, while oil tax collection stood at four per cent of total collection,” the report noted.
It is the first time that the FIRS will cross the 10-trillion Naira mark in tax revenue collection.
The Performance Update Report further clarified that included in the total revenue sum is the sum of N146.27 billion which is the total value of certificates issued by the Service to private investors and NNPC for road infrastructure under the Road Infrastructure Development Refurbishment Investment Tax Credit Scheme created by Executive Order No. 007 of 2019.
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The report also stated that the N10.1 trillion is exclusive of tax waived on account of various tax incentives granted under the respective laws, which amounted to N1,805,040,163,008.
Providing perspective to this unprecedented tax collection, the FIRS noted in the Performance Update that the Muhammad Nami-led management upon assumption of office came up with a four-point focus, namely: administrative and operational restructuring; making the service customer-focused; creating a data-centric institution; and automation of administrative and operational processes.
It further noted that over the period of 2020 to 2022, the management had introduced reforms bordering around these four-point focus which were producing results.
The service noted that this achievement could not have been possible without a conducive environment created for staff and officers of the Service, who are pulling their weight on the global stage with international recognitions and awards;
“The Service had also automated most of the administrative and operational processes. A major leap was the full deployment of the TaxPro Max for end-to-end administration of taxes in June 2021. The module for the automated TCC went live 1st January 2023 while taxpayers had already downloaded over 1,000 TCCs this year without having to visit FIRS office,” the report read.
It also noted that the Service had operationalised its data mining and analysis system thereby allowing for data-backed taxpayer profiling.
Other reforms the Service introduced in this period focused on the detoxification of the tax environment by ridding it of mutual mistrust, negative tax morale, and tax evasion, through effective taxpayer education, open engagement with stakeholders and improved services.
It noted that it is as a result of these reforms, framed around the four-focus points that the Service was able to achieve this collection.
“This collection was possible through collaboration with our stakeholders, from our colleagues at the Executive branch of government, to the members of the judiciary, to our brothers and sisters at the National Assembly, as well as the tax advisory committee, professional bodies, unions, and most crucially our taxpayers.
“We have peaked, but this is not certainly our peak. In fact, my hope is that this would be the least sum the Service would ever collect going forward,” Nami said in the report.
This is the second consecutive year that the Service will be recording unprecedented tax collection.
In 2021, the Service achieved a record tax collection of N6.405 trillion, being over hundred percent of its collection target for the year, as well as the first time that the Service will cross the six trillion mark.
In 2022, building on the success of the preceding year, the Service achieved a record collection of N10.1 trillion, being over 96 per cent of its collection target for the year, and the first time the Service will cross the ten trillion mark.
This collection represents an over 100 percent leap from the tax collected by the Service in 2020—the first year of the current management of the Service.
MPAN, therefore, wishes to congratulate FIRS on this giant stride, and urges all Nigerians and those doing business in the country to cooperate with the Service so it can achieve more in generating revenue that will create a meaningful life for all citizens.
Malam Gambo Jagindi, National Chairman, MPAN. January 24, 2023
Seunmanuel Faleye is a brand and communications strategist. He is a covert writer and an overt creative head. He publishes Apple's Bite International Magazine.