Business

FIRS records increase in non-oil tax revenue

FIRS records increase in non-oil tax revenue

 

The Federal Inland Revenue Service (FIRS) said it has recorded significant increase in collectable tax revenue from the non-oil sector of the economy.

This increase is despite the national and global economic upheaval caused by the COVID-19 pandemic.

Executive Chairman, FIRS, Mr. Muhammad Nami, made this known on Tuesday during a courtesy call on the Minister of Finance and National Planning, Mrs. Zainab Ahmed.

Mr. Nami who led the members of the FIRS Board to the minister, attributed the increase in the non-oil sector receipt to reform measures introduced by the FIRS Board and Management as well as the renewed vigour in the Service workforce.

According to Mr. Nami, non-oil tax receipts have consistently contributed 75-90 per cent of total tax revenue in recent months. For instance, Mr. Nami disclosed that out of N490 billion collected by the Service in July only N52 billion was from the oil sector with the rest coming in through non-oil receipts.

Mr. Nami commended the minister for her support to the FIRS and its Board since their inauguration earlier in the year and solicited closer working relationship between the Service and her ministry.

Attesting to Mr. Nami’s disclosure, the minister commended the Management and Board of the FIRS for working to limit the disruptive impact of COVID-19 on government revenue through their proactive reforms, noting that this had made it possible for the three tiers of government to receive their monthly statutory allocations from the Federation Accounts.

According to a statement by Director, Communications and Liaison Department, FIRS,  Abdullahi Ismaila Ahmad, the minister observed that Value Added Tax (VAT) and Stamp Duties receipts have boosted government revenue despite the pandemic.

Mrs. Ahmed pledged to continue to support the Management and Board of the FIRS and tasked the Service to work harder towards diversifying government revenue sources further away from dependence on oil.

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