FG Generates N586.17bn From Taxes In 90 Days

The Federal Government generated a total sum of N586.17bn as tax revenue through the Federal Inland Revenue Service in the first quarter of this year, a document showing the fiscal position of government has shown.

An analysis of the document, obtained by our correspondent from the Office of the Accountant General of the Federation on Friday, indicated that the tax revenue generated within the period indicated a shortfall of N170.54bn when compared to the N756.71bn earned in the first quarter of 2015.

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According to the fiscal document, the first quarter tax receipts of N586.17bn was earned from petroleum profit tax where the sum of N213.35bn was collected in three months; the corporate tax (Companies Income Tax, stamp duties and capital gains tax) where N176.25bn was earned and Value Added Tax, which recorded a total receipt of N196.57bn.

A breakdown of the N213.35bn PPT revenue showed that the sum of N90.87bn was collected in January. The figure dropped to N50.74bn in February before rising to N71.72bn in March.

For VAT, the N196.57bn breakdown showed that the sum of N62.07bn was earned in January while February and March recorded N69.71bn and N64.78bn, respectively.

In terms of corporate taxes, the sums of N50.82bn, N71.20bn and N54.21bn were collected in January, February and March, respectively.

The low tax collections by the FIRS in the first quarter of this year may threaten the N4.9tn revenue target set for the agency by the Federal Government in the 2016 fiscal period.

The government had while setting the N4.95tn tax revenue for FIRS said a total of N2tn, representing 40.35 per cent of the entire revenue, is projected to be generated from VAT.

This would be followed by the Companies Income Tax with N1.87tn, representing 37.87 per cent; the PPT, N800bn or 16.14 per cent; and education tax N180bn or 3.63 per cent.

Others are the National Information Technology Development Fund N20bn or 0.4 per cent and the consolidated development levy N80bn or 1.61 per cent.

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Daniel Enisan is a content writer at edliner.com. With a degree in mass communication, Daniel is a full breed journalist. Daniel is a realist, loves the use of sarcasm, a movie and music junkie. He is also a poet and a good listener.

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