FIRS Recorded the Highest Returns in Tax in First Half of 2023 - Chairman Tells NEC

The Federal Inland Revenue Service (FIRS) recently announced that the commission has recorded a total of N5.5 trillion from taxes for the first half of the fiscal year which began in January and ended in June 2023. According to the commission, this data was the highest generated tax revenue reported in any six months of a fiscal year. 

Details of these findings were made known by Mr. Muhammad Nami, Chairman of FIRS who gave a presentation of the 2023-2024 tax revenue projection to the National Economic Council at the Presidential Villa in Abuja on Thursday, July 20, 2023. His report highlighted the success recorded by the commission of which the returns in tax were more than 100% of its aim for Q1 2023.

According to the report, revenue from taxes received from the oil industry from January to June 2023 was N2.03 trillion, which was less than the objective of N2.3 trillion. Additionally, non-oil tax collection exceeded the goal of N2.98 trillion to achieve N3.76 trillion.

Mr. Muhammad Nami, Chairman of FIRS stated that the Service received N1.65 trillion in tax revenue in June 2023, the biggest amount ever collected in a single month.

The excellent success was attributed to increased voluntary tax compliance, which was made possible by the automation of the FIRS tax administrative operations. Mr. Nami also acknowledged the difficult economic conditions that will prevail in the first and second quarters of 2023 as a result of the currency redesign and the 2023 General Elections.

According to Mr. Nami's media assistant, Johannes Oluwatobi Wojuola, “This is a good head start as we work towards meeting our target for the year. And it was achieved despite stubborn headwinds such as the impact of the currency redesign and 2023 General Elections on the economy in the first and second quarters of 2023.”

“This half-year performance was achieved as a result of improved voluntary tax compliance by taxpayers, the continued improvement of automation of our tax administration processes, including the updated VAT filing processes; as well as our dogged engagement with stakeholders in both the formal and informal sectors of the economy,” he added.

On the issue of tax revenue collection, the FIRS chairman told the public that "better days ahead" in the second half of the year. He expressed confidence in the ongoing development of tax administration systems as well as the beneficial economic effect of the present government's initiatives.

The commission also recorded that a total of N10.1 trillion was generated from taxes in 2022, marking it to be the greatest amount ever collected by the institution in a single year. However, with the records of the first half of 2023, the commission is sure to break another record by the end of the year.