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The Federal Inland Revenue Service (FIRS) has achieved a remarkable milestone, announcing a record tax revenue collection of N5.5 trillion for the first six months of 2023. This marks the highest tax revenue ever recorded by the Service in any half-year period.
Mr. Muhammad Nami, the Executive Chairman of the FIRS, made this announcement while presenting the 2023-2024 tax revenue outlook to the National Economic Council at a meeting held on July 20, 2023, at the Presidential Villa, Abuja.
The presentation showcased FIRS’ 2023 Half-Year Collection Report, revealing that the Service surpassed its mid-year target of N5.3 trillion, achieving over 100 percent of the set goal.
The report further highlighted that tax revenue collected from the oil sector from January to June 2023 amounted to N2.03 trillion, exceeding the target of N2.3 trillion. On the other hand, non-oil tax collection stood at N3.76 trillion, surpassing the target of N2.98 trillion.
Mr. Nami emphasized that the Service collected an impressive total of N1.65 trillion in tax revenues in June 2023, setting a new record for the highest tax revenue collected in a single month.
He attributed the outstanding performance to improved voluntary tax compliance, which has been facilitated by the automation of FIRS’ 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, the Service managed to achieve this commendable result.
“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.
He also emphasized the significance of improved automation and tax administration processes, including updated VAT filing procedures, as well as the constructive engagement with stakeholders in both the formal and informal sectors of the economy.
Looking ahead, the FIRS Executive Chairman expressed confidence in achieving even better performance in the second half of the year. He attributed this optimism to the continuous improvement of tax administration processes and the positive impact of the government’s current policies on the economy.
In retrospect, the Service achieved a remarkable total collection of N10.1 trillion in 2022, setting a record for the highest tax collection ever recorded by the FIRS in a single year. With the impressive half-year performance in 2023, the prospects for sustained growth in tax revenue collection are promising.
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