Revenue earned by the Federal Government through taxes dropped by N520 billion in the first nine months of 2015, statistics from the Federal Inland Revenue Services has shown.
The government earned a total of N2.92tn from taxes in the first nine months of 2015 as opposed to the N3.44tn, which it set as its target for the period.
An analysis of tax revenue collected by the FIRS showed 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.
In the second quarter, the FIRS collected N1.18tn which comprise 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 N980.48bn was generated from taxes as against the target of N1.14tn. The PPT generated the sum of N325.86bn and non-oil taxes accounted for N654.6bn.
Soon after his appointment, Executive Chairman, FIRS, Mr. Babatunde Fowler, promised to audit all companies operating in the country with a view to increasing the level of compliance with the relevant tax laws, thus improving tax revenue.
Fowler said an increase in tax revenue will reduce the country’s reliance on oil revenue. He said there needs to be a collaboration between professional service providers, states boards of internal revenue and FIRS, to make this a reality.
“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,” he said.
