Despite disruptions caused by the COVID-19 pandemic, the Federal Inland Revenue Service (FIRS) on Thursday said it recorded significant increase in collectable tax revenue from the non-oil sector of the economy.
The Executive Chairman of FIRS, Mr. Muhammad Nami, disclosed this in Abuja, during a courtesy call on the Minister of Finance and National Planning, Mrs. Zainab Ahmed, by board members of the revenue agency.
Nami attributed the increase in the non-oil sector receipt to reform measures introduced by the FIRS Board and Management as well as the renewed vigour in the Service’s workforce.
According to him, non-oil tax receipts have consistently contributed 75-90 per cent of total tax revenue in recent months, stressing that out of N490 billion collected by the Service in July, only N52 billion was from the oil sector while the rest came from non-oil receipts. Nami commended the minister for her support to the FIRS and its Board since their inauguration earlier in the year and solicited closer working relationship between the Service and her ministry.
In her response, the minister commended the FIRS leadership for working to limit the disruptive impact of COVID-19 on government revenue through proactive reforms, noting that this had made it possible for the three tiers of government to receive their monthly statutory allocations from the Federation Accounts. The Minister observed that Value Added Tax (VAT) and Stamp Duties receipts have boosted government revenue despite the pandemic. Ahmed pledged to continue to support the FIRS and tasked the Service to work harder towards diversifying government’s revenue sources further away from dependence on oil.