FIRS rake in N1tr revenue in six months

Vows appeal judgment stopping collection in Rivers.

Federal Inland Revenue Service (FIRS) generated a sum of N1 trillion from the collation of Value Added Tax (VAT).

However, FIRS is determined to appeal a ruling of a Federal High Court in Rivers that voided its jurisdiction on VAT collection.

On Monday, the Federal High Court sitting in Port Harcourt, declared that Rivers, not the FIRS, should collect VAT, and Personal Income Tax (PIT) in Rivers State.

In a report, the National Bureau of Statistics (NBS) said the Federal Inland Revenue Service (FIRS) raked in N512.25 billion in the second half as against the N496.36 billion it generated from VAT in the first quarter.

The revenue is N185.05b higher than the N327.20 billion generated by the Service in the corresponding period of last year.

Speaking on the court’s verdict, FIRS’ spokesman, Dr. Ismaila Abdullahi, said that the Service’s Head of Legal has been mandated to challenge the Port Harcourt judgement.

He cautioned that “VAT can easily become complicated if you allow states to pass their own laws and to enact it and administer it”.

If this judgement stays, he is worried that Nigeria will “have different rates, banks, telecommunications and people doing businesses in different states will have to deal with different rates with different authorities”.

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