FIRS GENERATED N4.396 TRILLION IN TAXES FROM NON-OIL SECTOR IN 2021
The Federal Inland Revenue Service (FIRS) has disclosed that it generated the sum of N4.396 trillion in taxes from non-oil sector in 2021 compared to N2.507 trillion collected in 2017.
This was disclosed by the FIRS chairman, Muhammad Nami in the Service’s 2021 performance update.
According to the performance update, the nation recorded a consistent increase in tax collection from the non-oil sectors of the economy in 2021, peaking at 69% from 38% in 2017.
What the FIRS is saying about the surge in tax
The FIRS boss stated that the surge in taxes from the non-oil sectors was primarily due to the adoption of the “TaxPro Max” Solution and other strategic reforms implemented by the Service.
TaxPro-Max enables seamless registration, filing, payment of taxes and automatic credit of withholding tax as well as other credits to the Taxpayer’s accounts among other features, TaxPro-Max also provides a single-view to Taxpayers for all transactions with the Service.
Muhammad Nami said, “This feat was made possible due to the adoption of the in-house built TaxPro Max Solution and other strategic reforms implemented by the Service.”
It was emphasized that the year 2021 was a significant one for tax administration in Nigeria and that corporate income tax collection for 2021 was based on business profits for 2020, as required by law.
The FIRS boss noted, “In the year 2020, the country entered into economic recession for the second time in 5 years. The recession was caused by a 5-month lockdown occasioned by the Coronavirus pandemic. To compound the economic challenges of Covid-19, business activities were disrupted by the End-SARS protests. Due to the recession, many businesses struggled to survive with very few reporting profits. The base for corporate tax was grossly eroded due to losses and business failures.”
He described the June 2021 launch of the new automated tax administration system (dubbed “TaxPro Max”) as a game-changer.
“With the solution, taxpayers experienced ease of registration, reporting, payment and issuance of Tax Clearance Certificates while the Service experienced greater efficiency in the deployment of resources thereby leading to improved revenue collection,” he said.