The Federal Inland Revenue Service (FIRS) has reported a tax revenue collection of N5.5 trillion between January and June of 2023.
This represents the highest tax revenue collection ever recorded by the Service in any first six months of a fiscal year.
The 2023-2024 tax revenue outlook was presented by Mr. Muhammad Nami, the Executive Chairman of FIRS, during a meeting with the National Economic Council at the Presidential Villa in Abuja on Thursday, 20th July 2023.
Breakdown of tax collection
The report highlighted that the FIRS surpassed its target for the first half of the year, collecting over 100% of its intended goal of N5.3 trillion.
A breakdown of the figures revealed that tax revenue from the oil sector stood at N2.03 trillion, while non-oil tax collection amounted to N3.76 trillion.
In an exceptional achievement, the Service collected a record N1.65 trillion in tax revenues for the month of June 2023, marking the highest tax revenue ever recorded in a single month.
Impact of automated tax collection process on tax collection
Mr. Nami attributed this success to improved voluntary tax compliance, which was made possible by the implementation of automated tax administrative processes. He commended taxpayers’ willingness to comply with tax regulations, highlighting the significance of their contributions to the nation’s economic progress.
- Speaking during the presentation, Mr. Nami said “This is a good head start as we work towards meeting our target for the year. And it was achieved despite stubborn headwinds such as the impact of the currency redesign and 2023 General Elections on the economy in the first and second quarters of 2023”.
FIRS hopeful of a better second half in revenue collection.
The FIRS Executive Chairman expressed optimism, assuring the nation that better days were ahead in terms of tax revenue collection. In his words,
- “This half-year performance was achieved as a result of improved voluntary tax compliance by taxpayers, the continued improvement of automation of our tax administration processes, including the updated VAT filing processes; as well as our dogged engagement with stakeholders in both the formal and informal sectors of the economy.”, he concluded.
Speaking on expectations for the second half of the year, Mr Nami noted the current administration’s policies as well as the service’s improvement in tax administration processes.
Backstory
It is worth recalling that the FIRS achieved a total tax collection of N10.1 trillion in 2022, a historic feat as the highest tax collection ever recorded by the Service in a single year.
This success serves as a testament to the dedication and commitment of the FIRS in fulfilling its mandate to enhance tax revenue generation for national development.
Gbogun ni agaie local government Niger state of Nigeria.