..Says the collection shows over 100 percent leap from tax collected in 2020
The Multimedia Publishers Association of Nigeria (MPAN) has congratulated the Federal Inland Revenue Service (FIRS) for collecting over N10 trillion in tax revenue by 2022, a target of N10.44 trillion, the highest tax collection in history.
MPAN, National Chairman, Malam Gambo Jagindi in a statement on Wednesday in Abuja described the development as a commendable achievement and called on all patriotic Nigerians to praise it.
According to Jagindi, the service was able to reach its height despite the global economic crisis and the diminishing Nigerian economy, saying that FIRS has shown that even in the midst of many difficulties, with determination and commitment, nothing can stop anyone from achieving. set goals.
“This collection represents a jump of more than 100 percent from the taxes collected by the Service in 2020—the first year of the current Service management.
“MPAN, therefore, wishes to congratulate FIRS on this giant step, and appeal to all Nigerians and those doing business in the country to cooperate with the Service so that they can earn more income that will make life meaningful for all citizens.”
The Service in FIRS 2022 Performance Update, released to the public on Monday, after the executive chairman’s meeting with President Muhammadu Buhari, explained that; ”Corporate Income Tax contributes N2.83 trillion; Value Added Tax N2.51 trillion; Electronic Money Transfer Levy of N125.67 billion and Prescribed Tax N353.69 billion.
“Non-oil taxes accounted for 59 percent of the total collection in the year, while the oil tax collection stood at four percent of the total collection,” 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. created 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 Management Muhammad Nami-led to Panyaka from the office came up with four-points of focus, namely: restructured administrative and operational; create customer-focused services; create data-centric institutions; and automation of administrative and operational processes.
He also noted that during the period from 2020 to 2022, management has introduced reforms around the focus of these four points that have produced results.
The Service noted that this achievement would not have been possible without the conducive environment created for the Service’s staff and officers, who pull their 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 as a result of the reform, it is framed in terms of four focuses that the Service can achieve this collection.
“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.
“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,” Nami said in the report.
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, as well as 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 percent of its collection target for the year, and for the first time the Service will cross the ten trillion mark.