The final performance result in revenue collection by the Federal Inland Revenue Service (FIRS) for the first quarter (Q1, 2020) has been released, which revealed that the Service posted a new collection record of 15 per cent increase for the quarter under review.
According to a statement that was issued yesterday by its director, communications, Abdullahi Ahmad, the final computation of the Q1, 2020 results shows that FIRS collected N1.203 trillion in Q1 2020, N156 billion higher than its corresponding Q1, 2019 collection of N1.046 trillion. This translates to 15 per cent. increase over the previous year’s first quarter collection.
The Q1, 2020 performance result shows an increase in collection trends. Details of the figures sent by Ahmad showed that the agency had Capital Gains Tax (CGT) oncrease from N96,408 billion in Q1 2019 to increase to N643.935 billion in Q1 2020.
Accordingly, Gas Income Tax rose from N2.977 billion in Q1, 2019 to N15.59 billion in Q1, 2020. Although Ahmad said Petroleum Income Tax (PPT) grew by 9 per cent in the quarter under review, he failed to provide the figures to support that claim.
According to the statement, Companies Income Tax (CIT) increased to N102.610 billion in Q1, 2020 compared to N40.696 billion declared by the Babatunde Fowler-led previous administration in Q1, 2019.
NITDEF also rose from N691.206 in 2019 to N111,037 billion in Q1 2020; while Stamp Duty increased from N3.386 billion in Q1, 2019 to N4.750 billion in Q1, 2020. Value Added Tax (VAT) increased by 27% at the Customs Level and 13% at the Non-Import Level, he simply said.
Ahmad said the passage of Finance Act 2019 led to a drop in withholding tax rate from 5 per cent to 2.5 per cent in some sectors. The Act also tinkered with Pre-operational levy (levy paid by taxpayerstoobtain TCC) thereby resulting in a 5 per cent collection in Q1, 2020, a drop from 7 per cent in Q1, 2019.
With the full take-over of Pay As You Earned (PAYE) and PIT in the FCT by FCT-IRS, the FIRS lost all FCT collection, which led to the fall in both PAYE and Personal Income Tax (PIT) for Q1, 2020.
“Without a doubt, this commendable performance is a direct result of the blockage of leakages and other wide-ranging reforms launched by the Executive Chairman, Mr. Muhammad Nami towards repositioning the Service for efficient service delivery,” he said in the statement.