FIRS Collects N1.123trn Revenue In First Quarter

Posted by African Examiner Business News, Featured, Latest Headlines Thursday, April 2nd, 2020

(AFRRICAN EXAMINER) – The Federal Inland Revenue Service (FIRS) says it has collected N1.123 trillion revenue in the First Quarter (Q1) of 2020.

The FIRS made this known in a statement issued by Mr Abdullahi Ismaila, Director, Communications and Liaison Department of the service in Abuja on Thursday.

He said the service recorded seven per cent increase in its collection target for the first quarter of 2020 in spite the global economic challenge owing to COVID-19 pandemic.

Ismaila stated that there was unprecedented increment in the first quarter 2020 when compared to the same period in the last fiscal year, 2019’s first quarter.

“A comparative analysis of the two periods shows that the FIRS collected N1.123 trillion in the first quarter of 2020, N1.046 trillion for the first quarter in 2019.

“A massive 568 per cent increase in Capital Gains Tax from N96.408 million in Q1 2019 to N643.935 million in Q1 2020 which gave the Service’s revenue its biggest lift.

“No doubt as a direct result of blockage of leaks in that revenue flow by the wide-ranging reforms inaugurated at the FIRS by its newly appointed Executive Chairman, Mr Muhammad Nami, immediately he assumed office in December 2019,” he said.

He noted that similarly, the service recorded 522 per cent increase in collection from the NITDEF to bag N690.532 million in Q1 2020, compared to N111.037 million in Q1 2019.

The director recalled that since he took the mantle of leadership at the FIRS, Nami has instituted a regime of policy reforms anchored on deployment of Information Communication Technology (ICT) to block tax leakages and motivated members of staff by restoring a number of their statutory roles hitherto outsourced to private consultants.

“Also within the period under review, Gas Income Tax increased by 286 per cent in Q1 2020, which amounted to N11.491 billion compared to N2.9 billion raked in in Q12020.

“Similarly, Company Income Tax (CIT) collected in Q1 2020 jumped by 135 per cent to N95.733 billion corresponding figure of N40.696 billion recorded in Q1 2019.

“Stamp Duty collection in Q1 2020 is N4.602 billion, which represents 36 per cent increase to the Q1 2019 figure of N3.386 billion

“In the education sector, the FIRS recorded 81 per cent increase in its collection of Education Tax, which is N13.102 billion in Q1 2020 compared to N7.229 billion in Q1 2019.

“Both Nigeria Customs Service and Non-Import VAT also increased by 11 per cent in Q1 2020 N63.296 billion and N261.245 billion, respectively, from the Q1 2019 figures of N57.008 billion and N236.030 billion in that order”.

He added that moving forward the on-going reforms and deployment of more ICT platforms at the FIRS would take its root in Q2, while the service expected a brighter outlook in revenue collections. (NAN)