Some economic experts at the weekend expressed doubts over the ability of the Federal Inland Revenue Service (FIRS), to meet its N8.2 trillion revenue target for 2019 FIRS is the main agency of the Federal Government charged with responsibility of accessing, collecting and accounting for tax and other revenues accruing to the Nigerian authority.
According to those who reviewed the Service’s rather ambitious target for the current financial year, relying on the improved collection recorded in the past few years to index tax collection for the year under review would only amount to an illusion given the current parlous state of the nation’s economy. They observed’ “Although the economy has tremendously recorded improvement and increase in tax collection due to some reforms being carried out by FIRS to boost tax administration in the country, the dream of the FIRS to meet the N8.2 trillion revenue target may be a tall order in the face of excruciating financial downturn on the part of businesses in the country.” Going by the revenue target figures reeled out by the Executive Chairman of FIRS, Babatunde Fowler, on the sidelines of a high-level meeting on illicit financial flows hosted by the UN General Assembly in New York recently, about N1.5 trillion revenue had been collected between January to May 15, 2019. The amount realised between January and the middle of May represents a paltry 18.7 per cent of the set target by FIRS. NAN which did the analysis noted that its effort to get an updated report covering the first and second quarter of the year proved abortive. But available statistics showed that FIRS generated N12.62 trillion revenue from tax over the last three years. A breakdown of the amount indicated that N3.3 trillion was generated in 2016, N4.02 trillion in 2017 and N5.32 trillion was realised in 2018, making it the highest revenue generated so far. Reacting to the said target, a financial expert, Mr. Akinsanya Niyi, described the proposed collection of N8.2 trillion as ‘a tall order’ meant to spur performances by the personnel of the service, but not necessarily to be achieved. Akinsanya explained that the tax law allows companies to pay for taxes of previous years up till the month of June of the successive years. He, however, said that there was tendency for more taxes to be collected as companies prepared for the new national budget cycle. He explained that many organisations would want to ensure compliance with tax laws so as to position themselves for job bidding. According to him, there is the need for FIRS to ensure continuous sensitisation of the general public to the importance of tax payment as well as the need for strict implementation of some provisions of the laws to boost tax collection.
Source: The Sun
