Fowler Replies Buhari’s Query Over Discrepancies In Tax Collections

Babatunde Fowler, the Executive Chairman of the Federal Inland Revenue Service (FIRS), has replied the query given by President Muhammadu Buhari over alleged discrepancies in tax collections from 2015 to 2018

Speaking on the reason for discrepancies in tax collections, Fowler explained, non-oil revenue such as VAT and company income tax — which he said are within the control of FIRS — have been on the increase compared to pre-2015 figures.

But oil-based taxes, such as petroleum profit tax (PPT), are beyond the control of the service.

Fowler, who is rounding off his four-year term as FIRS chairman amid speculations that he will not be re-appointed, also said that non-oil tax revenue has actually been on the rise.

“I refer to your letter dated 8th August, 2019 on the above subject matter and hereby submit a comprehensive variance analysis between budgeted and actual collections for each main tax item for the period 2012-2018 as requested (see appendix 1).

“Your letter stated that actual collections for a 3-year period were significantly worse than what was collected between 2012 and 2014. Total actual collection for the said period was N14,527.85 trillion, while total actual collection between 2016 to 2018 was N12,656.30 trillion.

The highlight of these collection figures was that during the period 2012 to 2014, out of the N14,527.85 trillion, oil revenue accounted for ₦8,321.64 trillion or 57.28% while non-oil accounted for ₦6,206.22 trillion or 42.72% and during the later period of 2016 to 2018, out of the N12,656.30 trillion, oil revenue accounted for ₦5,145.87 trillion or 40.65% and non-oil revenue accounted ₦7,510.42 trillion or 59.35%. FIRS management has control of non-oil revenue collection figures while oil revenue collection figures are subject to more external forces.”