KW-IRS Generates ₦9.5bn In 2021 First Qrts, Explains 2020 Drop
The Kwara State Internal Revenue Service (KW-IRS), on Tuesday, announced N9,598,504,939.90 as internally generated revenue in the first quarter of 2021, a feat credited to the increased on the adoption of technology and steady blockage of leakages within the tax administration systems.
Addressing a news briefing in Ilorin, the State capital, KW-IRS Executive Chairman, Shade Omoniyi, explained that the drop in revenue generation in 2020 was expected because of the COVID-19 restrictions.
She noted that the figure is the highest ever collected by the agency without any extraordinary item at any quarter since its founding in 2016, pointing out that kwara had adherenced to the tax break and waivers for businesses during the period which its operations being majorly manual as at last year.
She said the hugely manual nature of its operations as of last year meant that its staff were unable to move around to collect taxes as COVID-19 hit harder, disclosing that the feat was recorded without any new raise in the tax rate, even as the agency made deliberate steps to tackle multiple taxation.
Her words: “Kwara State Internal Revenue Service (KW-IRS) since inception has operated a manual tax administration system. This means assessment and collection of relevant taxes payable to the State Government from both KW-IRS and other MDAs are on contract basis.
“Despite this, the Service has recorded steady IGR growth over the years. Upon its assumption of office in October 2019, the Service’s new management began working tirelessly to sustain this momentum. These efforts culminated in the IGR growth from N23billion as at 30th September to N30.7billion as at the end of the year, 2019.
“The Service did not rest on its oars as various revenue and cost-cutting initiatives were immediately implemented to shore up the State IGR while it worked assiduously to automate its revenue and tax administration processes.
“The various revenue leakage blockages paid off when in the first quarter of 2020, the Service generated N7billion with the spread of the Corona Virus and subsequent lockdown of the State by the government towards the end of March and up until May.
“The State IGR plummeted to N2billion and the state economy was greatly affected by the lockdown and the State’s collection system was still contract-based as at this time, it was only to be expected that no serious activities would happen in the revenue space for that period.
“It is also known that Kwara State was one of the States who followed the Covid19 protocols fully which is a main factor for the second quarter of 2020 revenue performance, recalling that the State was adjudged as one of the highest in performance and proactiveness in the fight against Covid19 on all indices by various monitoring entities’. she explained.
She expected that with the gradual easing of the lockdown, revenue generation by the service again shot up to N4billion in the last quarter of the year and N6billion in the fourth quarter of 2020.
“The Service has since then not stopped working round the clock to recover lost grounds. Thus, in the first quarter of 2021, the Kwara State Internal Revenue Service recorded an Internally Generated Revenue of N9,598,504,939.90 (Nine Billion, Five Hundred and Ninety Eight Million, Five Hundred and Four Thousand, Nine Hundred and Thirty Nine Naira, Ninety Kobo Only) without an extraordinary item.
“Having mapped out strategies to achieving its IGR target for the current fiscal year, the first quarter collections show steady and significant growth, month-on-month as indicated below:
She stated that Month Revenue Generated in January was ₦ 2,984,312,074.60, February ₦ 3,058,746,474.21 and March ₦ 3,555,446,391.09 totalling ₦ 9,598,504,939.90
“This feat of KW-IRS in Q1, 2021 was a great improvement over the N6, 227,099,973.42 raked in, in the last quarter of 2020. It is a reflection of the relentless efforts of the Service in bringing seamlessness to Tax Administration through automation and introduction of online payment platforms to ease payment of all taxes.
“It’s is also a reflection of the Harmonized Bill recently introduced to serve the following benefits among others: calculates, consolidates and communicates all payable tax revenue and non-tax revenue as applicable to each eligible taxpayer in the State, within any assessment year; brings all eligible businesses into the Tax net.
“Stops illegal negotiations between taxpayers and collectors in the ministries or KW-IRS offices and prevents diversion of funds; displays all taxes due for payment by a particular taxpayer to block most of the leakages and educates on double and multiple taxation by showing that a single entity or taxpayer could be charged to different revenue lines depending on nature of business.
She added that other initiatives have been introduced to include re-profiling of taxpayers, making mandatory of submission of schedules along remittances; carrying out prompt enforcement on recalcitrant taxpayers, expansion of ticketing model for the informal sector etc.
Omoniyi remarked that the growth in the 2021 first quarter IGR is equally an indication that the Kwara State Government continues in its efforts to ensure the economic activities of the State recovers fast from the crippling effects of the Covid-19 pandemic.
“The Kwara State Internal Revenue Service, in spite of the drive to increase IGR, has not introduced new taxes since the inception of the administration of Governor Abdulrahman Abdulrazaq; the required and legitimate taxes due are what are being paid by taxpayers and collected appropriately into the coffers of the State.
“KW-IRS will continue to work to ensure improvement in revenue generation; a veritable support for the Federal allocation to ensure the State Government meets its responsibilities and the desires of Kwarans.
KW-IRS boss assured that the Service will also continue its collaboration with all MDAs and Stakeholders in the State for effective and efficient collection of all that is legally due from taxpayers. The Service will strategically and systematically play its part by using the most appropriate technology and committed workforce for the growth of revenue for the State.”