Tax expert and CEO of SD&D Capital Management Limited, Idakolo Gabriel Gbolade has commended the Federal Inland Revenue Service (FIRS) for surpassing its target of N6.401 trillion. Mr. Idakolo stated this in Transcorp Hilton, Abuja, at the Annual General Meeting of the Finance Correspondents Association of Nigeria (FICAN) which was themed “Rising Tax Obligation Amid Dwindling Purchasing Power.”
In his remarks, Mr. Idakolo hailed the Service for its consistent increase in its tax collection, and for achieving over 100% of its tax collection target for the year 2021.
“The Federal Inland Revenue Service (FIRS), the government agency saddled with the responsibility of tax collection has been increasing its tax collection drive over the years seeing it generate N4.95 trillion in 2020 representing 98% of its revenue target and it also generated N6.405 trillion into government covers in 2021 achieving 100% of their revenue target.
“This giant stride by the FIRS in 2021 could also be associated with the introduction of a new automated tax administration system called (TaxPro Max) launched in June 2021 to enable taxpayers experience ease of registration, reporting, payment and issuance of Tax Clearance Certificates e.t.c. There is no doubt that a system which incorporates these goals and make them bedrock of its services would benefit both the tax payers and FIRS.”
He further commended state revenue services for also achieving over 100% of their target.
“It is also worthy of note that some state Internal Revenue Services like Lagos and FCT have recorded great improvement in tax collection seeing FCT-IRS surpassing its target of N109 Billion by 108% in 2021. This performance definitely would assist the government in achieving its objectives if properly channeled the right way.”
He also added that there was the need for the government to look boosting economic activities in other to increase revenue for national growth.
“The Government should as a matter of urgency focus on other quick wins that can boost economic growth, it is economic growth that increases revenue through inward investments and increased tax compliance by businesses,” Mr. Idakolo stated.
He advised that “the government needs to reposition the economy by boosting consumer spending and improving the business climate for the private sector to thrive, because as the business environment improves and more businesses are formalized the tax base will also expand”.