The Federal Inland Revenue Service (FIRS) has hit a milestone in the first half of 2023 after generating N5.5 trillion in tax revenue during the first half of 2023.
This unprecedented figure represents the highest tax collection ever recorded by the service within a six-month period in any fiscal year.
Providing a comprehensive breakdown of the tax revenue, Johannes Oluwatobi Wojuola, the Special Assistant on Media and Communication to the Chairman of FIRS, revealed that the service achieved 88 percent of its target from oil revenue and surpassed its target for non-oil tax.
According to Wojuola, “Tax revenue collected from the oil sector from January to June 2023 stood at N2.03 trillion, surpassing the target of N2.3 trillion. Non-oil tax collection amounted to N3.76 trillion, exceeding the target of N2.98 trillion.”
In June 2023 alone, the service collected a total of N1.65 trillion in tax revenues, establishing a new record for the highest tax revenue collected within a single month.
In response to this impressive revenue inflow, Muhammad Nami, the Executive Chairman of the FIRS, ascribed the achievement to improved voluntary tax compliance facilitated by the automation of the service’s tax administrative processes.
Nami stated, “This remarkable performance is an excellent head start as we work towards meeting our target for the year.
Despite the challenging economic climate posed by factors such as the currency redesign and the 2023 general elections during the first and second quarters of the year, our improved voluntary tax compliance, enhanced automation of tax administration processes including updated VAT filing processes, and persistent engagement with stakeholders in both the formal and informal sectors of the economy have contributed to our success.”
With the relentless drive for enhanced tax administration processes and the positive impact of government policies on the economy, FIRS anticipates an even better performance in the second half of 2023.
In 2021, the FIRS reported tax revenue of N6.4 trillion. Company income tax accounted for N1.896 trillion, petroleum profit tax reached N2.008 trillion, and value-added tax (VAT) amounted to N2.07 trillion, according to the agency’s data.
However, an investigation by TheCable revealed a discrepancy of N800 billion in the declared petroleum profit tax at the federation accounts allocation committee (FAAC) meeting.
In 2022, the service achieved another milestone, generating N10.1 trillion in revenue, marking the highest tax collection ever recorded in the history of the agency.