FIRS makes N1.2trn in Q1 revenue collection

The Federal Inland Revenue Service (FIRS) has disclosed that it received a total of N1.2 trillion, which translates into a 15 percent increase for the service.

This was contained in a statement issued to newsmen in Abuja by the Director, Communications and Liaison Department, Abdullahi Ismaila Ahmad.

It said in the final computation of the Q1, 2020 results, a comparative analysis of both 2019 and 2020 periods shows that the Q1, 2020 collection of N1,203,310,372,900.34 is over N156 billion higher than its corresponding Q1, 2019 collection of N1,046,889,787,060.27 which translates to the 15 percent increase over the previous year’s first quarter collection.

The statement said Q1, 2020 performance result shows an astronomical increase in collection trends.

“Capital Gains Tax (CGT) recorded 568%  increase to N643,935,849.06 from N96,408,740.90.

“Gas Income Tax rose by 420% from N2,977,345,332.31 in Q1,2019 to N15,489,264,736.92 in Q1,2020. Even the Petroleum Income Tax (PPT) increased by 9%.
“Other taxes such as Companies Income Tax (CIT) increased by 152% – N102,610,369,777.73 in Q1, 2020 compared to N40,696,980,658.52 for the Q1, 2019; NITDEF rose by 522% – Q1, 2020 N691,206,855.85 to N111,037,797.16 for the Q1, 2019; and Stamp Duty increased by 40% from N3,386,648,663.85 in Q1, 2019 to N4,750,893,578.48 in Q1, 2020. Value Added Tax (VAT) increased by 27% at the Customs Level and 13% at the Non-Import Level.

The statement further noted that the passage of the Finance Act 2019 led to a drop in Withholding Tax rate from 5% to 2.5% in some sectors.

The Act, according to the statement, also tinkered with Pre-operational levy (levy paid by taxpayers to obtain TCC) thereby resulting in a 5% collection in Q1, 2020, a drop from 7% in Q1, 2019.

“With the full take-over 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 said.

The statement further disclosed that performance was a direct result of the blockage of leakages and other wide-ranging reforms launched by the Executive Chairman of the service, Muhammad Nami, towards repositioning the Service for efficient service delivery.