Tax revenue dropped by N367bn in 2020 – FIRS

The Federal Inland Revenue Service (FIRS) collected N4.95 trillion in total tax revenue in 2020, the agency said on Tuesday.

However, this was N367.7 billion lower than N5.32 trillion generated in 2018.

It also recorded N5.26trn as tax revenue in 2019.

The FIRS Chairman, Muhammad Nami, who disclosed these in a statement issued by the agency’s spokesman, Abdullahi Ismaila, in Abuja, however, said the 2020 collection was below the N5.1 trillion revenue target for the year.

He blamed the shortfall in revenue collection to fall in oil price in the international market, #ENDSARS protest and COVID-19 pandemic.

Read also: FIRS mandates landlords, agents to charge 6% stamp duty on tenancy, lease agreement

Other factors, according to him, were the additional tax exemptions granted to small companies in the 2019 Finance Act and insecurity in some parts of the country.

Nami said: “The revenue for the year was remarkable when placed against the backdrop of the effects of COVID-19 on the Nigerian economy. With the N4.9trillion we were able to meet 98 percent of the revenue target in 2020.

“Non-oil tax collection was 109 percent in 2020, nine percent higher than the previous year.

“The conscientious taxpayers in the country and dedicated members of staff of the FIRS nationwide for their support and devotion to work made this performance possible despite the numerous obstacles encountered in 2020.

“The FIRS is optimistic that the current fiscal year will be better than in 2020.”

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