Teddy Oscar, Abuja
The Federal Inland Revenue Services (FIRS) on Thursday disclosed that it generated the sum of N1.84 trillion for the Federal Government between January and June 2015.
Acting Executive Chairman, Mr. Sunday Samuel Ogungbesan dropped the hint, while briefing the Senate President, Senator Abubakar Bukola Saraki, on the activities of FIRS.
Ogungbesan said that the aforementioned amount was tax realised from both the oil and non-oil sectors.
He however, blamed the dwindling non-oil revenue on tax evasion by individuals and corporate bodies in the country, that had devised all manner of strategies to evade payment of taxes to the government.
Giving a breakdown of the figure, Ogungbesan revealed that the sum of N697 was generated from petroleum profit tax, the sum of N778 was generated from company tax, while the sum of N376 was generated from value added tax.
He, however, recognised that the oil and gas sector has not been doing too well, despite being the key to the nation’s economy.
“This is as a result of many factors many of which are completely outside our control. The price of oil in the international market that we all know has continued on the downward slide although in the last three months, it started gathering some momentum. As at today, I think it averages $62, but the average we have computed is $59. That is what is obtainable today,” he explained.
Ogungbesan further explained that the agency recorded low revenue collection this year as a result of the general election; delay in the passage of the 2015 Budget, Islamist Boko Haram insurgency in the North-East, poor financing of the real sector by banks, and decrease in consumption of goods and services.
“Revenue collection between 2012 and 2015 showed that 2015 is below the benchmark because oil is not doing well due to the structure of the economy of Nigeria. There are institutional rigidities that made this to be so. Seventy-nine percent of companies wait till 31st December to file their report.
“What we are trying to introduce now is to promote self assessment by encouraging part payment. We have N702 (billion) for this month now. It would be N715 billion at the end of the month when the customs collection is received.
“Poor performance of the oil and gas sector brought the collection of taxes very low. Low oil lifting attributable to political uncertainty, drop in the price of oil in the international market, the low level of business activities during election period, delay in passage of 2015 Budget, low level of financing of the real sector by the banks,” he added.
He also complained that the agency has no board to oversee its activities, which he lamented made it difficult for the body to take certain critical decisions that would enhance its performance.
“Since 2012 FIRS has no board thereby delaying taking critical actions having impact on the overall governance of the agency.
“The passage of the FCT Act would encroach into the activities of the FIRS because they would want to collect personal income tax and keep it to themselves. We are working with the Central Bank of Nigeria (CBN) to develop a platform that would enable us have access to the records of every company in the country.
“We looked at those, who own private jets and thought that yes, you are enjoying facilities and assets Nigerians do not have privilege to enjoying; we will name something we call surcharge on you, and of course customs also was to do some others like furniture surcharge, mansion surcharge, various kind of surcharges.
“But regrettably, we have not been able to administer this. One, we have challenges; we raised assessment on about 130 private jet owners because we were made to understand that we have up to that number.
“With the new government, we know that we will go to the Honnourable Minister of Finance, when appointed, to see, if we should still pursue it; if it will be helpful to the government,” said.
In his remarks, Saraki asked the FIRS to shore-up non-oil revenue, as well as increase the country’s collection of taxes.
Saraki, who frowned at the country’s dependence on revenue generated from crude oil sales, stressed that non-oil revenue is capable of making up for the revenue shortfall recorded by Nigeria owing to the drop in international oil price.
“I think Nigeria’s continued dependence on oil is not something we should encouraged. Try to look at taxes which is more reliable and sustainable to grow the economy,” he said.
While also calling on the agency to raise the bar and increase the country’s collection of taxes, Saraki noted that the success of Nigeria’s revenue drive is dependent on the FIRS, whose responsibility is to resolve the revenue problem the nation was having in the oil sector.
