In a remarkable feat, the Federal Inland Revenue Service (FIRS) has surpassed all previous records by announcing a staggering total tax revenue collection of N5.5 trillion for the first half of 2023, covering the period from January to June. This extraordinary achievement marks the highest tax revenue collection ever recorded by the Service in any first six months of a fiscal year.
The momentous announcement was made by Muhammad Nami, the Executive Chairman of the FIRS, during the presentation of the 2023-2024 tax revenue outlook to the esteemed National Economic Council. The presentation took place on Thursday, July 20, at the prestigious Presidential Villa in Abuja.
According to the 2023 Half-Year Collection Report presented during the meeting, the FIRS surpassed its mid-year target of N5.3 trillion by achieving over one hundred per cent of its target for the first half of the year. Notably, the tax revenue collected from the oil sector during this period amounted to N2.03 trillion, while the non-oil tax collection stood at an impressive N3.76 trillion.
The standout figure in this exceptional performance was the Service's tax revenue collection in June 2023, where it reached an unprecedented N1.65 trillion, making it the highest tax revenue ever collected by the FIRS in a single month.
Mr. Muhammad Nami attributed this remarkable achievement to the improved voluntary tax compliance of taxpayers, which was bolstered by the successful automation of FIRS' tax administrative processes. Despite facing challenges like the impact of the currency redesign and the 2023 General Elections on the economy during the first and second quarters of 2023, the FIRS managed to achieve a good head start.
The Executive Chairman emphasized the role played by the continued enhancement of automation in their tax administration processes, including the updated VAT filing procedures, as well as their unwavering engagement with stakeholders from both the formal and informal sectors of the economy.
Looking ahead to the remainder of the year, Mr. Nami provided assurances that the country should anticipate "better days ahead" in terms of tax revenue collection. He expressed confidence in the continued improvement of their tax administration processes and the positive impact of the current government's policies on the economy.
It is worth recalling that the FIRS had previously accomplished a total tax collection of N10.1 trillion in the year 2022, setting a remarkable precedent as the highest tax collection ever made by the Service in a single year.
Expectations for the Future
With the FIRS achieving unprecedented success in tax revenue collection during the first half of 2023, there is a renewed sense of optimism for the nation's economic prospects. The remarkable figures indicate that efforts towards enhanced voluntary tax compliance and streamlined tax administrative processes have borne fruit.
As the FIRS sets its sights on the second half of the year, the nation eagerly awaits the outcome. With an ongoing commitment to automation and a favorable policy environment, it is anticipated that the Service will continue to make significant strides in tax revenue collection.
Furthermore, the positive outlook expressed by the Executive Chairman instills confidence in businesses and individuals alike. As the government's policies continue to positively impact the economy, stakeholders in both the formal and informal sectors can anticipate favorable conditions for growth and development.
In conclusion, the record-breaking tax revenue collection of N5.5 trillion in the first half of 2023 by the FIRS highlights the agency's determination and commitment to enhancing tax compliance. This exceptional achievement serves as a testament to the efficacy of automation in tax administration and the collaborative efforts of all stakeholders involved. As the nation looks forward to "better days ahead," the FIRS remains resolute in its mission to foster sustainable economic growth through robust tax collection.
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