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FIRS targets N4.9trn in taxes to fund 2016 budget
In a bid shore up Federal Government’s revenue and reduce budget deficit, the Federal Inland Revenue Service has set a target of N4.95tn for the 2016 fiscal period.
This, according to agency, is to help fund the 2016 federal budget.
This was disclosed by the Executive Chairman of FIRS, Mr Babatunde Fowler, at the opening session of the agency’s 2016 corporate strategy retreat in Abuja.
According to Fowler, FIRS would come up with innovative ways to achieve its target, adding that more attention would be given to improving non-oil revenue through effective compliance and enforcement activities.
Breaking down the target, Fowler said N2tn or 40.35 per cent of the total would be generated from Value Added Tax, while Companies Income Tax is expected to generate N1.87tn or 37.87 per cent; Petroleum Profit Tax, N800bn or 16.14 per cent; and Education Tax, N180bn or 3.63 per cent.
Fowler also the FIRS projects that National Information Technology Development Fund will generate N20bn or 0.4 per cent while Consolidated Development Levy is expected to generate N80bn or 1.61 per cent.
He said: “In 2016, we do not have the luxury of not meeting our targets, especially as the government is looking to non-oil taxes to bridge the revenue gap. In this regard, we have proposed a revenue target of N4.957tn for 2016. This target is largely dependent on non-oil collections and in particular, VAT will account for N2tn and CIT is expected to account for N1.87tn.
“Between them, these two taxes are expected to provide almost 80 per cent of our collection in 2016. We, therefore, have our work cut out and there is no room for complacency.”
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