Despite the contraction in Nigeria’s GDP by 6.10% according to the data released by the National Bureau of Statistics, the Tax Revenue was reported to have hit 1.2 trillion Naira as contained in the data released by the Federal Inland Revenue Service (FIRS), which is marginally lower than the 1.27 trillion Naira quarterly target.
This figure also shows a reduction when compared compared to the N1.4 trillion tax collections in the second quarter of 2019.
Details of the report showed that N440billion was generated from Petroleum profit taxes which shows an increase compare to the N71 billion target. However, the N1.1 trillion target fr the non oil sector could not be met as N848 billion was generated in the quarter.
Furthermore, as stated in the report, N324.3 billion was generated from Company Income Tax g in the second quarter while Gas Income tax generated N77.7 billion.
In addition, the report also shows that the Nigeria Customs Service (NCS) generated N81.62 billion from import VAT, while Non-import VAT generated N245.6 billion, and Capital gains tax generated N617.4 million. Also, N62.6 billion was generated from stamp duty during the period, as against a target of N4.3 billion.
While reviewing the report, Ms Amaka Anku, a Lecturer and Analyst at Elliot School of International Affairs noted that the report shows that Nigeria is finally taking is revenue crisis seriously as the country was able to generate more revenue from taxes in Quarter 2 of 2020 as compared to the Quarter 2 of 2019 despite a 6.10% contraction in the GDP.170