Don't Miss


Home   >   Goverment   >   FG earns N4.1tn from taxes

FG earns N4.1tn from taxes

By on January 6, 2014

The Federal Government realised the sum of N4.18tn from tax collection in the first 11 months of 2013, investigations.

This was contained in a document submitted to the Federation Accounts Allocation Committee at its December meetings by the Federal Inland Revenue Service.

The committee, chaired by the Minister of State for Finance, Dr. Yerima Ngama, is saddled with the responsibility of considering revenue for the federation account as well as distributing same to the three tiers of government based on the current allocation formula.

The document dated December 10, 2013 was obtained exclusively by our correspondent in Abuja on Friday.

According to the document, the N4.18tn revenue was collected under four main tax components.

They are Petroleum Profit Tax where N2.5tn was earned for the 11 month period; Companies Income Tax (N940.73bn); Non import Value Added Tax (N583.9bn) and Import VAT N154.05bn.

A month-by-month analysis of the tax revenue showed that N458.34bn was collected in January; February had N363.37bn; March N329.96bn, April N351.8bn while N420.69bn was collected in May.

The month of June recorded the highest tax collection of N622.86bn while the sum of N320.18bn and N345.73bn was collected in July and August, respectively.

Similarly, the document stated that N305.06bn was collected in September, while October and November had N319.26bn and N343.53bn in that order.

Curiously, it said that the PPT collection witnessed a decline of N13.34bn or 6.65 per cent between October and November.

It said, “The collection for PPT in the month of November, 2013 was N187.15bn. This performance was lower than October’s performance of N200.49bn by N13.34bn or 6.65 per cent.

“Furthermore, when November’s performance is compared with the monthly budget of N190.02bn, it was also lower by N2.87bn.”

Explaining the reason for the drop in the PPT collection, the FIRS stated, “The main factor which accounted for the decrease recorded in November 2013 as against October was the downward review of estimates by Petroleum Sharing Contract and Modified Carry Agreements operators and Force Majure declared resulting in the shut-in of crude lifting by Nigeria Agip Oil Company and Phillip Oil.”

On CIT collections for the month of November, the FIRS document put the tax revenue at N64.65bn.

This, it noted, represented a decrease of N24.93bn when compared with the monthly budget of N89.58bn.

However, the October CIT collection was higher than the October 2013 performance of N52.42bn by N6.13bn or 11.69 per cent; adding that the increase was as a result of the receipt from Mobil and Chevron.

For VAT collection, the FIRS document said, “The total VAT collection for the month of November amounted to N91.73bn. When compared with the monthly budget of N78.77bn, it recorded an increase of N18.96bn.

“A further comparison with the collection of N66.35bn in October shows an increase of N25.38bn or 38.25 per cent. The performance was as a result of increase in the consumption of VAT-able products and services for the month under review.”

The FIRS had in December introduced the Integrated Tax Administration System Project as part of efforts aimed at optimising tax collection and improving the level of voluntary compliance among tax payers.

The project, according to the FIRS Acting Executive Chairman, Mr. Kabir Mashi, was conceived to assist the service in discharging its statutory function of assessing, collecting and accounting for taxes collected.

He said with the commencement of the ITAS, the journey of modernisation had begun as he noted that the automation of tax administration constituted a larger part of the transformation initiative of the FIRS.

“The objective of the implementation is, among others, to make compliance process easier for tax payers and ensure transparent and efficient tax system that optimises tax collection and voluntary compliance,” he stated.

[Punch]