1 February 2013

Nigeria: 'N1.8 Trillion Non-Oil Tax Revenue Is Dismal'

The president of West African Union of Tax Institutes Mr. Kunle Quadri said yesterday that the N1.806 trillion declared as non-oil revenue in 2012 was unimpressive.

Quadri said in Lagos that there was nothing to celebrate in the data for the 2012 tax earnings from the non-oil sectors.

The Federal Inland Revenue Service tax earnings in 2012 indicated that the Service made a total revenue of N5.007 trillion.

The non-oil sectors generated 36.07 per cent of the 2012 net tax income. The figure was N1.557 trillion in 2011.

FIRS said that the earnings from Company Income Tax for 2012 was N847.5 billion, a marginal increase over the N715.4 billion the service declared in 2011.

Gross income from VAT in 2011 was N659.15 billion, but rose to N710.5 billion 2012.

Quadri said that the poor tax income from the non-oil sectors in 2012 gave the impression that the sectors were under-exploited.

According to him, tax revenue from education, hospitality, agriculture, finance and other sectors outside the oil and gas industry were substantial enough for government to reap bountifully if it had exploited them optimally.

He said: "Improving the policy strategy and increasing investments in the non-oil sectors will definitely enhance government's tax income from them and also create massive employment opportunities.

"I believe that the federal government can surpass its N5.007 trillion tax revenue feat in 2012 if it invigorates activities in tourism and agriculture."

He urged the government to inject more funds into the transport sector as "much can be earned by way of tax from transportation." (NAN)

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