Modupe Gbadeyanka
By Modupe Gbadeyanka
In the year 2016, the Federal Inland Revenue Service (FIRS) generated a total of N1.21 trillion for the government.
According to data obtained by Vanguard, Value Added Tax (VAT) yielded N473.5 billion as against the budgeted N198 billion; while Annual Luxury Surcharge and Capital Gains Tax brought in N389,215; and N5.2 billion respectively.
It was further gathered that N299.8 billion was collected as Company Income Tax (CIT), which was a far cry from the expected N867 billion contained in the 2016 budget.
Also, Education Tax generated N 46.9 billion; Foreign Travels Surcharge, N50,000; NITDEF N7.6 billion; Pay As You Earn (PAYE), N47.2 billion; Personal Income Tax, N632.7 million; Pre-Operational Levy, N391 million; Stamp Duties, N5.9 billion; and Withholding Tax, N320 billion.
The data revealed that the prevailing negative economic environment really had a very adverse effect on the performance of tax collection agency.
It would be recalled that the recession has forced the Federal Government to reduce its CIT budget for 2017 to N808 billion, representing a 7 percent cut.
However, the VAT budget has been increased from N198 billion in 2016 to N242 in the 2017 budget, increasing by N44 billion or by 22 percent.
