The Federal Inland Revenue Service (FIRS) stated on Thursday that it had continued to record a significant increase in collectable tax revenue from the non-oil sector of the economy, despite the negative economic growth caused by the COVID-19 pandemic.
The Executive Chairman, Mr. Muhammad Nami made the disclosure in Abuja during a courtesy call on the Minister of Finance and National Planning, Mrs. Zainab Ahmed, by the FIRS’ Board.
Nami attributed the increase in the non-oil sector receipt to reform measures introduced by the FIRS’ Board and management as well as the renewed vigour in the Service’s workforce.
According to Nami, non-oil tax receipts have consistently contributed 75-90 per cent of total tax revenue in recent months.
He disclosed, for instance, that out of N490 billion collected by the Service in July, only N52 billion was from the oil sector while the balance was through non-oil receipts.
Nami commended the minister for her support to the FIRS and its board since their inauguration earlier in the year and solicited a closer working relationship between the Service and her ministry.
In her remarks, the minister commended the management and board of the FIRS for working to limit the disruptive impact of COVID-19 on government revenue through proactive reforms, noting that this had made it possible for the three tiers of government to receive their monthly statutory allocations from the Federation Accounts.
A statement by the Director, Communications and Liaison Department, FIRS, Abdullahi Ismaila Ahmad, said the minister observed that Value Added Tax (VAT) and stamp duties receipts had given a boost to government revenue despite the pandemic.
Ahmed promised to continue to support the FIRS and tasked the Service to work harder towards diversifying government revenue sources further away from dependence on oil.