The Federal Inland Revenue Service (FIRS) has achieved a remarkable milestone, generating a record-breaking N5.5 trillion in tax revenue during the first half of 2023. This figure marks the highest tax collection ever recorded by the service in any first six months of a fiscal year.
Johannes Oluwatobi Wojuola, the special assistant on media and communication to the chairman of FIRS, provided insights into the revenue breakdown. He mentioned that the service accomplished 88 percent of its target from oil revenue and surpassed its target for non-oil tax collection.
From January to June 2023, tax revenue collected from the oil sector amounted to N2.03 trillion, slightly below the target of N2.3 trillion. However, non-oil tax collection soared to N3.76 trillion, surpassing the target of N2.98 trillion. Notably, the service collected an impressive total of N1.65 trillion tax revenues in June 2023, setting a new record for the highest tax revenue collected in any single month.
Muhammad Nami, executive chairman of FIRS, attributed this impressive performance to improved voluntary tax compliance facilitated by the automation of the service's tax administrative processes. Despite facing challenges such as the impact of the currency redesign and the 2023 general elections on the economy during the first and second quarters of the year, FIRS managed to achieve these outstanding results.
Nami expressed optimism for even better performance in the second half of the year, citing the continuous improvement of tax administration processes and the positive impact of the government's policies on the economy. He praised the increased voluntary tax compliance by taxpayers, the improved automation of tax administration, and the fruitful engagement with stakeholders in both formal and informal sectors of the economy.
In previous years, FIRS has also demonstrated its ability to achieve remarkable tax collections. In 2021, the agency generated N6.4 trillion in revenue, with significant contributions from company income tax, petroleum profit tax, and value-added tax (VAT). Similarly, in 2022, FIRS achieved a historic revenue collection of N10.1 trillion, reaffirming its position as a key player in generating tax revenue for the government.
