FIRS Smashes Revenue Target, Raises Bar for 2024 with N19.4trn Goal
In a stunning performance, the Federal Inland Revenue Service (FIRS) has surpassed its 2023 target by a whopping N1.67 trillion, raking in a record N12.374 trillion in tax revenue for the federation. This remarkable feat has fueled optimism for an even brighter future, with the government setting a challenging but achievable target of N19.4 trillion for 2024.
Tax Haul Exceeds Expectations:
- FIRS originally aimed to collect N10.7 trillion in 2023, but revised the target upwards to N11.5 trillion due to exchange rate fluctuations.
- Despite the revision, the agency’s actual collection was a staggering N817 billion above the adjusted target, thanks to improved efficiency in tax collection.
- Non-oil revenue was the star performer, accounting for 74.4% of the total at N9.2 trillion, highlighting the agency’s success in diversifying its income streams.
Driving Future Growth:
- Dr. Zacch Adedeji, FIRS Chairman, emphasizes the importance of a thriving economy for achieving the ambitious 2024 target.
- He stresses the need for a “viable economic environment” to nurture business growth and generate taxable prosperity.
- The agency plans to focus on “fruits, not seeds”, implying a shift towards taxing successful businesses rather than stifling economic activity.
Revolutionizing Tax Administration:
- The retreat also unveiled a new organizational structure designed to streamline processes and enhance efficiency.
- The customer-centric approach aims to simplify the taxpayer experience and eliminate complexities.
- A move away from traditional categorization establishes taxpayer segments based on thresholds, providing more tailored and efficient service.
Calls for Continued Reform:
- Finance Minister Wale Edun applauded the FIRS’s outstanding performance but urged further progress to match global trends.
- He highlighted the need for increased tax revenue to enable the government to fulfill its obligations to the people.
- The Accountant-General of the Federation, Dr. Oluwatoyin Madein, commended the FIRS’s contribution of 70% of total federation revenues but encouraged them to expand the tax base and explore new revenue streams.
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A Promising Path Ahead:
The FIRS’s 2023 success and ambitious 2024 target, coupled with the planned organizational reforms, paint a promising picture for Nigeria’s tax system. Whether the agency can achieve its goals and ultimately spur economic growth remains to be seen, but the positive momentum and commitment to transformation are encouraging signs for the future.
