FIRS Meets 94.5% Tax Collection Target in Q2 2020

Monday, August 24,2020

The Federal Inland Revenue Service (FIRS) was unable to meet its quarterly tax revenue target in the second quarter of the year as it was only able to meet 94.5 per cent or N1.2 trillion.

The tax collection body had been given a target of N1.27 trillion to achieve from April to June.

The figure indicated a decrease when compared with the N1.4 trillion tax collections it recorded in the second quarter of 2019, according to the Q2 2020 performance report of the agency.

Giving a breakdown, the tax collecting body noted that the collection showed that the petroleum profit taxes generated exceeded expected outcome by 2,488 per cent of N440 billion in the period, a huge increase when compared to the N71 billion target.

On the other hand, the non-oil taxes did not meet its N1.1 trillion target as it fell short by 22.9 per cent. The report said the service generated N848 billion in the quarter.

According to the report, Company Income Tax (CIT) generated N324.3 billion in the second quarter while Gas Income tax generated N77.7 billion.

Details also showed that import VAT collected by the Nigeria Customs Service (NCS) was N81.62 billion, while Non-import VAT stood at N245.6 billion, and Capital gains tax generated N617.4 million.

In terms of stamp duty, it also beat expectations by 1,355.8 per cent as the service generated N62.6 billion during the period as against a target of N4.3 billion.

Initially, the FIRS was not charged with the collection of stamp duty as this responsibility fell to the Nigeria Postal Service (NIPOST) until the amendment of the Finance Bill 2019 which shifted the responsibility to the tax body.

This, among other factors, established an intra-agency rivalry between both the FIRS and NIPOST who took to the social media to fire shots at each other.

However, following the intervention of the House of Representatives, the brawl seems to have been settled and it has promised to clear the air over who collects the stamp duties moving forward.

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