FIRS breaks 2021 record, collects N10.1 trillion in 2022

At Federal Inland Revenue Service (FIRS) has announced that it will collect over N10 trillion in tax revenue by 2022, the highest tax collection ever recorded in history.

The service was introduced in the report “FIRS 2022 Performance Update,” signed by the Chairman, Muhammad Nami, and released to the public on Monday, after a briefing with President Muhammadu Buhari.

“FIRS, by 2022 collected a total of N10.1 trillion in oil (N4.09 trillion) and non-oil (N5.96 trillion) as a target of N10.44 trillion.

“Corporate Income Tax contributed N2.83 trillion; Value Added Tax N2.51 trillion; Electronic Money Transfer Levy N125.67 billion and Earmarked Tax N353.69 billion.

“Non-oil taxes accounted for 59% of total collections in the year, while oil tax collections stood at 41% of total collections,” the report notes.

This is the first time FIRS will cross the 10 trillion Naira mark in tax collection.

The Performance Update Report further clarified that included in the total amount of revenue is the sum of N146.27 billion which is the total value of certificates issued by the Service to private investors and NNPC for road infrastructure under the Road Infrastructure Development Investment Tax Credit Scheme. made by Perpres No. 007 Year 2019.

The report also stated that N10.1 trillion is exclusive of tax exempted due to various tax incentives provided under the law, which is N1,805,040,163,008.

Providing a perspective for this unprecedented tax collection, FIRS noted in the Performance Update that Muhammad Nami-led Management when the assumption from the office came up with four focal points, namely: administrative and operational restructuring; create customer-focused services; create data-centric institutions; and automation of administrative and operational processes.

He further noted that throughout 2020 to 2022, management has introduced reforms around the focus of these four points that have produced results.

“The reforms carried out at different times in 2020 are gradually bearing fruit. By the end of 2022, the Service has restructured the administration of the Service for maximum efficiency and achieved internal cohesion so that all functional units work together to achieve the goals that have been set.

“As a result of the conducive environment created for the staff, officers of the Service that pull weight on the global stage with international recognition and awards;

“The service has also automated most of the administrative and operational processes. The main leap is the full deployment of TaxPro Max for tax administration by the end of June 2021. The module for automatic TCC was activated on January 1, 2023 when taxpayers have downloaded more than 1,000 TCCs this year without should visit FIRS office,” the report read.

It also notes that the Service has operationalized a data mining and analysis system, thereby enabling data-driven taxpayer profiling.

Other reforms launched by the Service at this time focused on detoxifying the tax environment by eliminating mistrust, negative tax morale, and tax evasion, through effective taxpayer education, open engagement with stakeholders and better services.

It notes that such reforms are in place, framed around four areas of focus that the Service can work towards.

Mr. Nami, the executive chairman of FIRS, commented on the record tax collection of N10.1 trillion achieved under his leadership, saying this was made possible through “implementation of strategic reforms in the last two years; renewed commitment by officers of the Service, accompanied by increased enthusiasm; as well as the deployment innovative technology for the automation of tax administration and operational processes.

“This collection is made possible in collaboration with stakeholders, from our colleagues in the executive branch of government to members of the judiciary, our brothers in the National Assembly, as well as tax advisory committees, professional bodies, trade unions, and most importantly our taxpayers.”

Speaking about the outlook for 2023, Mr. Nami said the Service will build on current reforms, achieve full automation and continue to create a resilient Service that will continue to provide sustainable tax revenue to fund the government.

“We intend to maintain, and even increase the momentum in 2023,” he said.

“We have peaked, but this is not our peak. In fact, my hope is that this will be the lowest amount the Service will ever collect.

“Our goal is to identify more areas where we can improve the delivery and efficiency of our collection; and plug gaps, while spreading innovative reforms in data and artificial intelligence.

“Finally, we believe that the FIRS can fulfill its responsibility of providing the government of the Federation with the necessary revenue to meet the needs of Nigerians through taxation.

“This can be done if we get the support we need from the three levels and hands of government, as well as all stakeholders.”

FIRS appreciates President Muhammadu Buhari for his support, as well as the Minister of Finance, Budget and National Planning, Zainab Ahmed and Minister of State, Clem Agba.

“FIRS management uses this medium to commend all patriotic taxpayers who pay their taxes correctly, stakeholders for their support, and Service officers for their dedication to duty.

“The service also owes its achievements in 2022 to the effective leadership of the Minister of Finance, Budget and National Planning – Zainab Ahmed, his brother, Minister of State – Clem Agba, members of the National Assembly and the support of the President. and the Commander-in-Chief of the Nigerian Armed Forces – Muhammadu Buhari.

This is the second year in a row that the Service will record unprecedented tax collections.

In 2021, the Service achieved a record tax collection of N6.405 trillion, more than one hundred percent of its collection target for the year, also the first time the Service will cross the six trillion mark.

In 2022, building on the success of the previous year, the Service achieved a record collection of N10.1 trillion, more than 96% of the collection target for the year, and for the first time the Service will cross the ten trillion mark.

This collection represents a jump of more than one hundred percent from the taxes collected by the Service in 2020-the first year of the current management of the Service.