The Federal Inland Revenue Service (FIRS) says it has set a new record in revenue collection, with a total of N1.2 trillion received in the first quarter of 2020, which translates a 15% increase compared to the 2019 first quarter collection.
The service explained that a comparative analysis of the two periods shows that the it’s Q1 2020 collection of N1,203,310,372,900.34 is over N156 billion higher than its corresponding Q1, 2019 collection of N1,046,889,787,060.27.
This was disclosed in a statement issued on Thursday by Abdullahi Ismaila Ahmad, Director, Communications and Liaison Department.
The service said the Q1,2020 performance result shows an astronomical increase in collection trends. “Capital Gains Tax (CGT) recorded 568% increase to N643,935,849.06, from N96,408,740.90”, it said.
It added that Gas Income Tax rose by 420% from N2,977,345,332.31 in Q1,2019 to N15,489,264,736.92 in Q1,2020. Even Petroleum Income Tax (PPT) increased by 9%.
“Other taxes such as Companies Income Tax (CIT) increased by 152% – N102,610,369,777.73 in Q1,2020 compared to N40,696,980,658.52 for the Q1,2019; NITDEF rose by 522% – Q1, 2020N691,206,855.85 to N111,037,797.16 for the Q1,2019; and Stamp Duty increased by 40% from N3,386,648,663.85 in Q1, 2019 to N4,750,893,578.48in Q1, 2020. Value Added Tax (VAT) increased by 27% at the Customs Level and 13% at the Non-Import Level.
“The passage of Finance Act 2019 led to a drop in Withholding Tax rate from 5% to 2.5% in some sectors. The Act also tinkered with Pre-operational levy (levy paid by taxpayers to obtain TCC) thereby resulting in a 5% collection in Q1, 2020, a drop from 7% in Q1, 2019,” the statement read.
The service however noted that the full take-over of PAYE and PIT in the FCT by FCT-IRS, it lost all FCT collection, which led to the fall in both Pay As You Earned (PAYE) and Personal Income Tax (PIT) for Q1, 2020.
FIRS however explained that it’s historic final performance results for Q1, 2020 are all the more remarkable as the period coincided with two adverse global developments on individuals, businesses and nations, a global fall in the price of crude oil price, which is Nigeria’s foremost cash cow; and a shutdown of the global economic system by the COVID-19 pandemic. .
“The 15% increase in Q1, 2020 is a first in the FIRS first quarter collection history since its inception in colonial times. This is attributed to widespread policy reforms and institutional re-organisation initiated by the Executive Chairman, Mr. Muhammad Nami, since assuming office in December, 2019, the statement read.
The service noted that Q1 collection results have been notoriously low as a result of limited economic activities within the period, which business analysts trace to the festive hangover of the New Year celebrations, delay in budget presentation.
