FIRS to improve tax income revenue following crash in oil prices

The Federal Inland Revenue Service says it is working on improving tax income generation.
This is against the backdrop of a crash in oil prices caused by the corona virus’ spread across borders.

The agency’s chairman, Muhammed Nami, made this known during a meeting with the Niger state government on revenue generation.

Oil prices dipped to thirty dollars per barrel on Monday this week, its lowest level since February 2016.

The Organisation of Petroleum Exporting Countries‘ failure to strike a deal with its allies on production cuts was responsible .

A down slide in crude oil demand as the Coronavirus spread to more countries had required a reduction in production to stabilize prices.

There are now concerns that Nigeria may not be able to fund its twenty twenty budget as the projected revenue will likely be reduced by half.

Nigeria’s second major revenue earner after crude oil is taxation and the tax authorities now see an urgent need to intensify existing efforts.

Nigerian states have been tasked severally on alternative revenue generation to prevent their total dependence on the federation account.

The Niger state government agrees with the tax collection agency, on strengthening tax income sourcing at state level.

This is in view of the situation in the oil market at this time as well as its implication for the federation account.

The FIRS targets over eight trillion naira tax revenue for this year after generating five point two trillion naira in twenty nineteen.

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