The Federal Inland Revenue Service (FIRS) achieved a remarkable milestone, raking in a record-breaking N5.5 trillion in tax revenue within the first six months of 2023.
The Federal Inland Revenue Service (FIRS) has marked a momentous occasion, reporting an unprecedented tax revenue collection of N5.5 trillion for the first half of January to June 2023. This impressive feat establishes a new record for the Service’s revenue collection during any first six months of a fiscal year.
The 2023-2024 tax revenue outlook presentation at the National Economic Council meeting on July 20th, 2023, witnessed the revelation of FIRS’ remarkable accomplishment. The agency not only achieved but exceeded its set target of N5.3 trillion for the first half of the year, underscoring the success of their tax collection efforts.
Oil Sector Revenue and Non-Oil Tax Collection Insights
The detailed 2023 Half-Year Collection Report highlighted the breakdown of tax revenue sources. From January to June 2023, tax revenue collected from the oil sector stood at N2.03 trillion, demonstrating a slight variance from the target of N2.3 trillion. Meanwhile, the non-oil tax collection amounted to N3.76 trillion, surpassing the N2.98 trillion target.
Record-Breaking Collection in June 2023
In the month of June 2023 alone, the FIRS collected a staggering total of N1.65 trillion in tax revenue. This achievement represents the highest tax revenue ever collected by the Service within a single month.
Factors Behind the Success
Mr. Muhammad Nami, the Executive Chairman of the FIRS, attributed the outstanding performance to improved voluntary tax compliance. This positive trend was made possible through the automation of the Service’s tax administrative processes, streamlining the tax collection system and encouraging greater cooperation from taxpayers.
Despite facing challenges such as the impact of the currency redesign and the 2023 General Elections on the economy in the first and second quarters, the FIRS managed to maintain an excellent head start. The resilience displayed in the face of these “stubborn headwinds” showcases the commitment of the agency towards its mission.
The Road Ahead: Expect “Better Days”
Looking ahead to the rest of the year, Mr. Nami expressed optimism, assuring the nation of “better days ahead” in terms of tax revenue collection. The continued improvement of tax administration processes and the positive impact of government policies on the economy are expected to contribute to this upward trajectory.
Building on Past Success
It is worth recalling that in 2022, the FIRS achieved an impressive total tax collection of N10.1 trillion, setting a new record for the highest tax collection in a single year.
The Federal Inland Revenue Service’s accomplishment of N5.5 trillion in tax revenue for the first six months of 2023 is a testament to their dedication to efficient tax collection and improved voluntary tax compliance. As the agency continues to enhance its tax administration processes and adapt to changing economic circumstances, there is every reason to be optimistic about the nation’s future tax revenue collection.