The Federal Inland Revenue Service (FIRS) on Thursday announced a total tax revenue collection of N5.5 trillion for the period between January and June 2023.
The Executive Chairman of the FIRS, Mr. Muhammad Nami made the disclosure while presenting the 2023-2024 tax revenue outlook to the National Economic Council at its meeting at the Presidential Villa, Abuja.
The presentation, which contained FIRS’ 2023 Half-Year Collection Report, showed that the FIRS achieved over one hundred percent of its target for the first half of the year compared with a mid-year target of N5.3 trillion.
According to the report, tax revenue collected from the oil sector from January to June 2023 stood at N2.03 trillion, as against a target of N2.3 trillion, while non-oil tax collection stood at N3.76 trillion, as against a target of N2.98 trillion.
Mr Nami, in his presentation, further stated that the Service collected a total of N1.65 trillion in tax revenues in June 2023. This sum is the highest tax revenue collected by the Service in any single month.
Speaking to what he described as “a good head start, despite stubborn headwinds,” Mr Muhammad Nami, attributed the excellent performance to improved voluntary tax compliance enabled by the automation of FIRS’ tax administrative processes.
“This is a good head start as we work towards meeting our target for the year. And it was achieved despite stubborn headwinds such as the impact of the currency redesign and 2023 General Elections on the economy in the first and second quarters of 2023,” said Mr Nami.
This half-year performance was achieved as a result of improved voluntary tax compliance by taxpayers, the continued improvement of automation of our tax administration processes, including the updated VAT filing processes, as well as our dogged engagement with stakeholders in both the formal and informal sectors of the economy,” he concluded.
“We believe that the performance in the second half of the year would be better considering the continuing improvement to our tax administration processes and positive impact of current government’s policies on the economy,” said the Executive Chairman.
The collection is the highest tax revenue to ever recorded by FIRS in any first six months of a fiscal year.