Statistic of N520bn shortfall in Tax Revenue recorded by FG

The Federal Government earned a total of N2.92tn from taxes in the first nine months of 2015, statistics obtained from the Federal Inland Revenue Service have revealed.

The statistics were exclusively obtained by our correspondent in Abuja on Sunday.

The amount when compared with the N3.44tn, which the Federal Government had set for the FIRS as target for the nine-month period, represented a decrease of N520bn.

A breakdown of the tax revenue earned by the service within the period showed that the sum of N756.7bn was collected in the first quarter of 2015 as against the quarterly revenue target of N1.02tn. The N756.7bn was raised from Petroleum Profit Tax, which contributed the sum of N368.59bn, and non-oil taxes on which the sum of N388.1bn was collected.

For the second quarter, a total sum of N1.18tn was collected by the FIRS made up of N306.14bn from PPT, while the balance of N881.9bn was generated from non-oil taxes.

In the third quarter, the FIRS statistics showed that the sum of N980.48bn was generated from taxes as against the quarterly target of N1.14tn. The PPT generated the sum of N325.86bn and non-oil taxes accounted for N654.6bn.

The Executive Chairman, FIRS, Mr. Babatunde Fowler, had shortly after assumption of office, said the service carried out a special audit of all companies operating in the country with a view to increasing the level of compliance with the relevant tax laws, thus improving tax revenue for the country.

Fowler had said there was a need for collaboration between the professional service providers, states’ boards of internal revenue and FIRS, adding that this would assist in increasing tax revenue thus reducing the country’s reliance on oil.

He stated, “We have obligation to the government in ensuring increase in revenue collection. It’s time to stop all forms of unwholesome practices in tax-related issues, because Nigerians need us at this critical time to reposition the country for more resources.

“We don’t have all the answers, we need you from both sides to reposition the entire process. All we are asking for is your cooperation to move the nation’s tax system to another level through your support and other stakeholders.”