The Federal Inland Revenue Service (FIRS) recorded 15 per cent increase in its collection for Q1, 2020 compared to Q1, 2019.
In a statement by its director of communications and liaison department, Mr. Abdullahi Ahmad issued in Abuja yesterday, the Service said it collected N1,203,310,372,900.34 in Q1, 2020 (over N156 billion increase) compared to N1,046,889,787,060.27 realised in the corresponding period of 2019.
“This translates to 15 per cent increase over the previous year’s first quarter collection,” it said.
Recall that earlier in the month, the FIRS reported that it generated a total of N1.11 trillion before issuing a final computation yesterday.
Q1, 2020 performance showed an astronomical increase in collection trends as Capital Gains Tax (CGT) recorded a 568 per cent increase to N643, 935,849.06 compared to N96, 408,740.90 in the corresponding quarter of last year.
Also, Gas Income Tax rose by 420 per cent from N2,977,345,332.31 in Q1,2019 to N15,489,264,736.92 in Q1,2020 as Petroleum Income Tax (PPT) further increased by nine per cent.
Other taxes, including Companies Income Tax (CIT), increased by 152 per cent to N102,610,369,777.73 in Q1 compared to N40,696,980,658.52 in the preceding quarter of 2019, while the Value Added Tax (VAT) increased by 27 per cent at the customs level and 13 per cent at the non-import level.
Stamp Duty tax increased by 40 per cent from N3, 386,648,663.85 in Q1 2019 to N4, 750,893,578.48 in Q1, 2020.
Ahmad attributed the improvement in revenue generation to widespread policy reforms and institutional re-organisation initiated by the agency’s executive chairman, Mr. Muhammad Nami, since assuming office in December 2019.
“It may be recalled that since taking the mantle of leadership at the FIRS, Mr. Nami has instituted a regime of policy reforms anchored on deployment of Information Communication Technology (ICT) aimed at blocking tax leaks.
“This is in addition to various measures taken to motivate members of staff in order to positively change their attitude to work. These include the restoration of their functions which were previously outsourced to Consultants, the introduction of Authority to Incur Expenditure (A.I.E) and the commencement of implementation of a new organizational structure, which opened up the opportunity for eligible staff to be promoted, leading to round pegs being put in round holes for efficient service delivery,” said Ahmad.
He also stated that the historic final performance in Q1, 2020 was particularly remarkable as the period coincided with two adverse global developments on individuals, businesses, and nations – a global fall in the price of crude oil price, which is the country’s foremost cash cow, and the shutdown of the global economy by the COVID-19 pandemic.
The statement, however, added that the passage of Finance Act 2019 led to a drop in Withholding Tax rate from five per cent to 2.5 per cent in some sectors.
“The Act also tinkered with pre-operational levy (levy paid by taxpayers to obtain TCC) thereby resulting in a five per cent collection in Q1, 2020, a drop from seven per cent in Q1, 2019.
“With the full takeover of PAYE and PIT in the FCT by FCT-IRS, the FIRS lost all FCT collection, which led to the fall in both Pay As You Earned (PAYE) and Personal Income Tax (PIT) for Q1, 2020,” it added.
