The Federal Inland Revenue Service, FIRS, hopes to earn N3.87 trillion from Value Added Tax, VAT and Companies Income Tax, CIT this year, Executive Chairman, Tunde Fowler said yesterday.
The N3.87 trillion from VAT and CIT will be 78.42 per cent of the N4.957 trillion tax revenue targeted for 2016.
Fowler spoke yesterday at the 2016 Annual Corporate Strategy Retreat of the FIRS, where he noted that he was not very happy with FIRS’ 2015 collection of N3.73 trillion against the revenue target of N4.57 trillion.
“The above target is clearly unacceptable and not a reflection of our capacity. I am particularly not pleased with the very poor VAT collection, which based on my previous experience at the state level in the administration of a tax similar to VAT, should be a high yield and easy to collect tax.
“Even the relatively good performance for CIT is buoyed by the fact that an initiative directly overseen by my office in the last three months of 2015 accounted for a collection of over N122 billion, without which the performance for CIT would have been less than 85 %.
“Against this backdrop, in 2016, we do not have the luxury of not meeting our targets especially as Government is looking to non-oil taxes to bridge the revenue gap.
“In this regard, we have proposed a revenue target of N4.957 trillion for 2016. This target is largely dependent on non-oil collection and in particular, VAT will account for N2 trillion (40.35% of the total target) and CIT is expected to account for N1.877 trillion (37.87 %) of the total target. “Between these targets are expected to provide almost 80 per cent of our collection in 2016. We therefore have our work cut out and there is no room for complacency.