The Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, has told federal legislators that the tax collection agency generated about N4.012 trillion from January-September this year, representing 60.77 percent of the N8.8 trillion target this year.
Fowler made the disclosure when he appeared before the Senate Committee on Appropriations that the amount was N77.89 billion above the N3.941 trillion generated by the Service in the corresponding period of last year.
The tax expert, who expressed his optimism that FIRS would surpass the N5.3 trillion tax collections last year in the 2019 fiscal year, told the lawmakers that the total tax collections by the Service last year was N5.320 trillion, representing 78.86 percent of the target set by the government.
He explained: “Our budget for 2019 was raised by N2.02 trillion, representing 30.4 per cent increase over the 2018 budget i.e. N6.747 trillion in 2018 to N8.8 trillion in 2019.
“Our total tax collection to date represents 78.2 per cent achievement of the corresponding budget of 2018. Based on the collection, we expect the total collection to equal N5.4 trillion by the end of 2019. Our drive towards developing more sustainable sources of tax revenue by shifting the focus from oil revenue to non-oil is also yielding positive results.
“Non-oil revenue collection for January to September 2019 stands at N2.423 trillion, representing 72 per cent achievement of the non-oil target for the period. Oil revenue collection of N1.588 trillion represents 49 per cent achievement to target for the period.
“The total collection contribution in 2019 shows a percentage ratio of 61 per cent for non-oil revenue to 39 per cent for oil revenue. Non-oil collection for January to September 2019 grew by 13 percent over the non-oil collection for the corresponding period in 2018”, Fowler added
The FIRS Chairman listed the strategies being adopted to achieve the N8.8 trillion target as including the deployment of Information and Communication Technology (ICT) tools and solutions, compliance and enforcement initiatives, international tax initiatives, tax amnesty programme and expansion of taxpayer database, amongst others
Making a strong case for a law that would provide for imprisonment of tax evaders, Fowler, pointed out that such a law would make over 40,000 tax-evasive individuals and businesses whose turnover is between N100 million and N1 billion to pay taxes.
He clarified: “Just a little over 3,000 of the taxpayers who have a lien on their accounts have paid N103 billion. In Nigeria, if you dare to pass laws that will send tax defaulters to jail, the 40,000 tax defaulters will pay.
“In terms of whether revenues cannot be generated by enforcement, we have gone over various programmes to bring people into the tax net.
“In 2016, there was a tax amnesty in which 5000 companies came through and paid N92 billion within 45 days. Voluntary Assets and Income Declaration Scheme (VAIDS) was also N90 billion. And it took one year.
“The question I’d like to ask you is: can N9 0billion make a difference in a developed or even a developing country? It will make a lot of difference. These are businesses or individuals that have income, but had refused to pay taxes. Currently, we have close to 40, 000 of those accounts under lien for which they have not paid any taxes.
“I believe that this is a crime and I think we are at that point now where we have no choice than to enforce payment. I did highlight earlier that 3,000 of those accounts paid N102billion.
“I think that we have reached that stage where the society should not condone those among us who have the opportunity and privilege to have a job or to earn profits and also accept them not to pay taxes to contribute to the society”, the FIRS boss stressed.
