The Federal Inland Revenue Service set a plan to collect N19.4 turn in tax this year after surpassing its 2023 revenue target by N816 billion, or 107% over the goal. This was revealed on Wednesday at the 2024 management conference by Amina Ado, the Coordinating Director of the Special Tax Operations Group.
The Federal Government expects N19.41trn revenue from the FIRS in 2024. This objective signifies a noteworthy rise of 67.91 percent from the prior year’s target and 56.9 percent from the actual revenue of the preceding year.
This objective signifies a noteworthy rise of 67.91 percent from the prior year’s target and 56.9 percent from the actual revenue of the preceding year.
FIRS had a target of N11.56trn but, it realised N12.37trn, a N816bn higher in 2023.
Ado mentioned that the agency worked with other regulators in 2023 to achieve its achievement and will work with them, other tax practitioners, and intermediaries this year in addition to outlining the plan the agency will use to generate the N19.4 trillion in income.
“In order to broaden the tax base as much as is permitted by law, we will keep interacting with other regulators, tax professionals, intermediaries, and the withholding concept in 2023 and beyond.
“Because these sector contributors and big taxpayers bring in a lot of money, we will enhance their management. To make it easier for taxpayers to pay, we will use technology to enhance service delivery.
“We will make it very difficult for those who are not compliant to comply.” To make sure the defaulters are held accountable, we will restructure our legal and prosecution efforts and uphold our debt collection procedures,” she declared.
Additionally, the FIRS reported a 21.7% rise in its projected N10.18 trillion in revenue for 2022. Between 2019 and 2023, when it recorded N5.262 trillion, N4.952 trillion, N6.403 trillion, N10.179 trillion, and N12.374 trillion, respectively, the pattern of rising anticipated revenue was sustained.
According to the Coordinator, Company Income tax topped the list as the most collected tax for the year as it makes up 36.14 per cent of the total taxes collected in 2023, It is followed by Value Added Tax of N3.64 trn and Petroleum Profit Tax of N3.17 trn.
According to data, the Federal Government anticipates receiving over N9.96 trillion in taxes from the oil industry this year. This represents roughly 214.2% of the revenue obtained from this type of taxation in the previous year.
Ado stated that the administrative reforms implemented by FIRS, including the automation of tax collection procedures, the launch of TaxPro-Max, and the utilization of third-party data for improved tax intelligence, are mostly responsible for the steady increase in revenue collection.