FIRS Lauds States Over N300bn IGR Raise
- Captures 10m new taxpayers in 4yrs
BY COBHAM NSA – Executive Chairman of Federal Inland Revenue Service (FIRS) and Chairman, Joint Tax Board (JTB), Babatunde Fowler says States shored up their Internally Generated Revenue (IGR) from N800 billion in 2016 to N1.16 trillion in 2018 despite the harsh economic environment in the country.
He explained that the figure represents a revenue leap of about 46.11 per cent within a four year period.
Similarly, Fowler said Nigeria’s tax database has increased from 10 million to 20 million, with the FIRS eyeing an ambitious target of about 45 million taxpayers nationwide by the end of December 2019
Speaking at the North Regional launch of the New Taxpayer Identification Number (TIN) Registration System and consolidated national tax database programme in Ilorin, Kwara State, Fowler said the new system aims at providing immense benefits to Nigerian taxpayers.
According to him, the consolidated database will not only provide a unique identity to the taxpayer but also facilitates ease of compliance.
“It limits the incidence of double taxation and is a prerequisite for a number of transactions such as sale and purchase of immoveable property, registration of vehicles, applications for plot of land, import and export licence, registration as a contractor, entry visas among others. Ultimately, the system promotes the ease of doing
business for both individuals and corporate bodies”, he said
Fowler stated that the last four years has witnessed laudable strides by JTB in the areas of expanding the tax base from 10 million to 20 million taxpayers with the potential for an increase of up to 45 million before the end of the third quarter of 2019.
Fowler said JTB has also improved at the level of promoting Nigeria’s business and financial health, adding; “As the process of securing the relevant data from the
Central Bank of Nigeria (CBN) via the Nigeria Inter-Bank Settlement
System (NIBBS), and the National Identity Management Commission (NIMC) as directed by the President are ongoing, we believe that today’s
ceremony will further reinforce the need for us to work together as
one towards ensuring a more friendly tax environment in the country, while promoting the various socio-economic initiatives of Mr. President such as the Strategic Revenue Growth Initiative, Ease of Doing Business and the Economic and Recovery Growth Plan.
“The New TIN Registration System is geared towards reinforcing the
laudable efforts of this administration towards building a robust tax-revenue administration system for the country and it aims to improve the ease of tax compliance while ensuring a sustainable and inclusive economy for all Nigerians.”
Other achievements listed by the FIRS boss include: A growth in the IGR of States by over 46.11 per cent from N800.02 billion in 2016 to N1.16 trillion in 2018; A growth of FIRS collections by 53.81 per cent from N3.30 trillion in 2016 to N5.32 trillion in 2018, with the 2018 figure of N5.32 trillion being the highest collection ever in FIRS’ history, while Non-Oil Revenue, with the N2.85 trillion figure representing about 53.63 per cent of total revenue collection.
Fowler, whose headship of the Service is now a source of litigation over alleged tenure elongation, also acknowledged Federal Government’s payment of the total sum of N135.8 billion, representing all outstanding PAYE tax liabilities owed by its MDAs to States from 2002 to 2016; with a total of N31.08 billion going to States in the North-Central geo-political Zone.
“We are confident that this gesture by the Federal Government will encourage State Governments to also reciprocate and promptly remit all Withholding Taxes and VAT due to the Federation Account;
#. A positive movement during the same period by Nigeria up 25 points in the Tax Administration Section of World Bank ‘Ease of Doing Business’.
“This positive progression is also reinforced by the recent listing of Nigeria as one of the ‘top 20 improvers in Doing Business for the year 2020’ by the World Bank. We expect that more positive country reports will be released by the time the full report by the World Bank is released in October 24th, 2019”, he said
The JTB Chairman further stated that the TIN Registration Go-Live event, which brings together all Tax
Authorities with a common vision and goal, is not only poised to change the nation’s financial profile but also lay a strong financial
foundation to fund all tiers of government beyond the usual aid, grants and borrowing.
In applauding the strides so far made by Kwara IRS, under Dr Murtala Awodun, Fowler said; “The choice of Kwara State as the host for the North-Central Regional flag-off event is strategic.
He said it is in recognition of the State’s path-finding role in the quest towards ensuring sustainable internally generated revenue profile for the State as well as for the region.
“Over the years, the Kwara State Internal Revenue Service (KWIRS) has designed and executed far reaching IGR reforms that have seen it establish itself as a model Revenue Agency in the region. Following the signing of the Law granting it autonomy in June 2015, it has developed in leaps and bounds constantly seeking to achieve excellence in tax administration.
“Having achieved a 221% increase in its collection, from N7.1 billion
in 2015 at the time of attaining its autonomous status, to N23 billion
in 2018, Kwara State IRS has come to be a benchmark for revenue
authorities, not just within the North Central region, but nationwide as well.
“It is also worthy of note that KWIRS is also the only State Revenue Agency in the country to have been ISO certified, with the ISO 9001 for Quality Management System and ISO/IEC 22301 for Business Continuity Management System.
“While Kwara State IRS continue to set standards, sister Revenue
Authorities within the zone are not left behind as statistics indicate
that Niger State with 60.05% and Nasarawa State with 22.56% are among the top fifteen States with an annual growth rate above 20% in 2018″, the JTB Chairman noted.
