The acting Executive Chairman, Federal Inland Revenue Service (FIRS), Alhaji Kabiru Mashi has said proactive steps have been taken to grow the countryâ€™s non- oil revenue base this year following the commencement of the Capacity Enhancement Programme which targets an additional $500 million in non-oil receipts.
Speaking yesterday in Abuja at the 2014 FIRS Corporate Retreat and Enlarged Management meeting tagged:”Growing Non-oil Revenue to Finance Government Programmes,” he also said non-oil tax collections for last year stood at N2.139 trillion.
The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala had last year said an international firm, McKinsey had been hired to help boost the country’s tax revenue base after the company helped South Africa recover $3 billion.
The Federal Government said it expected to raise as much as $500 million (about N83 billion) in additional non-oil receipts this year through the implementation of processes that would plug leakages in tax revenue.
Mashi expressed delight with the level of progress recorded so far in the exercise by McKinsey adding saying” by now, we are all on the same page on the issues; we now know the direction we are heading and appreciate their modest contributions.”
The acting FIRS boss, who admitted there was still a lot to be done in order to meet government’s N4.21 trillion revenue target for the 2014, said there had been positive indicators at the beginning of the year.
A breakdown of its target for the year showed it expects to rake in N1.789 trillion from petroleum profit tax (PPT), N1.030 trillion from companies income tax (CIT) including N96 billion from CIT Gas, N861 billion from value added tax (VAT), and N10.21 billion from capital gains tax (CGT).
In addition, the agency hopes to generate N8.46 billion from stamp duties while education tax, personal income tax (PIT) and technology levy is expected to contribute N156 billion, N59 billion and N10.6 billion respectively.
Mashi said the increasing global need to reduce the over-dependence on oil revenue made it inevitable for the Service to improve upon non-oil tax collection.
He said the event offered an opportunity for management and staff to review their performance last year and present a collective plan for the current year.
However, he said although the N4.805 trillion revenue collection for 2013 surpassed a target of N4.468 trillion by 7.56 per cent, it was below the FIRS internal target of N5.803 trillion by 17.18 per cent.
He added that total non-oil receipts of N2.139 trillion last year fell short of the targeted N2.188 trillion by three per cent.