FIRS collected only 54 per cent of targeted revenue in January

Despite the lowered target, Federal Inland Revenue Service (FIRS) collected only 54 per cent of its targeted revenue in January 2020.

The service netted N338.1 billion against a tax target of N620. 2 billion.

FIRS has a revenue target of N8.8 trillion in 2020.

According to collect performance data obtained by our correspondent in terms of percentage, Adamawa, Gombe and Taraba zone did best by N2,237,217,349.37 or 149.45 per cent of N1,496,937,795.22 target.

Akwa Ibom, Bayelsa and Cross River zone had a target of N2,175,116,159.19 for the month but raked in was N2,010,374,940.81 representing 92.43 per cent.

Lagos mainland East had a January target of N50,272,057,644.57 and actual collection of N39,177,218,569.19 amounting to 77.93 per cent.

ALSO READ: Devaluation of naira was hasty ― Uwaleke

Bauchi, plateau, Borno and Yobe had collection target of N2,793,435,123,22 , actual collection in the sum of N2,793, 435,123.22 actual collection sum of N1,446,670,932.56 indicating 51.79 percent; FCT, Nasarawa and Kogi had target sum of N61,680,175,079.81, collection total of N30, 248,678,333.46 representing 49.04 percent. Ekiti, Kwara and Ondo had tax collection target of N1, 726,864,502.79, actual collection of N757,471,765.95 representing 43.86 percent, Sokoto, Kebbi and Zamfara had tax collection target sum of N1,457,022,041.29, collection actual of N532,837,78 indicating 26.42 percent while Anambra and Imo had target sum of N1,457,022,041.29, actual collection sum of N384, 986,673.78 reflecting 26.42 per cent.

However, Director in charge of Tax Operations Group at FIRS, Mr Olufemi Oluwaniyi, said about half of the target relates to upstream oil business but the revenue from companies involved for 2019 is less than half of expectations.

“Due to the international dimensions of issues affecting the sector, the results are largely out of our control.

“By the way, the payment arrangements in that sector are such that January 2020 payment is still based on the previous year (2019) business.”

He also explained that the new administration just came into office and was settling down to reposition the Service.

“Again, the economy, in general terms, experienced a serious downturn occasioned by the outbreak of the coronavirus with consequential reduction in consumption & purchasing power.

“Collection in consumption-based tax like VAT could, therefore, not reach the planned level.”

NIGERIAN TRIBUNE