Federal Inland Revenue Service (FIRS) missed its revenue target for 2016 by N843,866,978,695.73, an exclusive document in possession of Nigerian Tribune has revealed.
This, according to FIRS sources, was despite the extensive recourse to the use of consultants within the year by the organisation’s management.
The service had a revenue target of N329.55 billion per month, translating to N3.954 trillion for the year.
However, actual collection for the year amounted to N3.110 trillion by the end of December.
FIRS collects Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Non-Import Value Added Tax and Import Value Added Tax (VAT).
Total collections from PPT for the year amounted to N1.157 trillion and CIT, N1.124 trillion making a sub-total of N2.282 trillion.
Also, the service generated N650.3 billion from Non-Import VAT and N177.8 billion from Import VAT thus adding up to N828.1 billion for the year.
An FIRS report submitted to Federation Account Allocation Committee (FAAC) meeting indicated that total collection by the agency in December 2016, was N329.11 billion, which although was N90.44 billion higher than collection for the previous month, was nonetheless lower than monthly target of N329.55 billion.
The agency attributed low level of performance on PPT for December at N99.11 billion, which was lower than that of November of N114.30 billion to “the downward review of estimates by some oil companies.”
On CIT, it was noted that the N60.73 billion collected for the month represented a decrease of N105.51 billion or 36.24 per cent performance level, when compared with the 2016 monthly budget of N166.24 billion.
“However, it was higher than the November 2016 collection of N56.33 by N4.4 billion or 7.8 per cent. The increase in CIT collections relative to the preceding month was attributable to the increase in the receipt of foreign withholding tax payments within the month.
“However, note that many companies file their returns in second and third quarter of the year, which accounts for the decrease in collection for the month under review when compared with the monthly estimate.”
In December, FIRS transferred N239.11 billion to the Federation and VAT pool accounts, which was lower than the 2016 monthly budget of N329.55 billion by N90.44 billion or 72.56 per cent performance level.
“It was equally lower than the amount of N246.21 billion transferred in November, 2016 by N7.1 billion or 2.88 per cent.”
Meanwhile, at the meeting of FAAC on Friday, a total of N400 billion was distributed to federal, states and local governments for the month of December, 2015.
While giving breakdown of December allocation earlier at Friday’s FAAC briefing, Adeosun had broken the N400 billion down into value added tax, N79.273 billion; statutory revenue, N224.883 billion; exchange gain, N52.846; and excess petrol profit tax, N42.998 billion.
In addition, Federal Government got N6.330 refund from Nigerian National Petroleum Corporation (NNPC).
Of the N400 billion, Federal Government took N105.756 billion or 52.68 per cent, state governments- N53.644 billion or 27.72 percent while local governments were allocated N41.357 billion, which is equivalent to 20.60 per cent of total.
and then