4th Quarter Results:  Kwara State Internal Revenue Service Generates N6.2bn

4th Quarter Results:  Kwara State Internal Revenue Service Generates N6.2bn

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The revenue authority empowered to  collect the taxes and duties payable to Kwara state government, the  Kwara state Internal Revenue Service (KW-IRS) announced   that it has generated the sum of N6,227,099,973.42 (Six Billion, Two Hundred and Twenty Seven Million, Ninety Nine Thousand, Nine Hundred and Seventy Three Naira, Forty Two Kobo)  for the fourth Quarter of the year 2020.

 

 

Mrs. Shade Omoniyi, who is the Executive Chairman of KW-IRS submitted that the revenue agency has ensured accountability and transparency in its internal processes and reporting while also improving significantly in the agency’s sequential and systematic reporting through the social, print, and electronic media platforms.

 

 

Acknowledging low-tax compliance as one of the challenges faced by the revenue agency in the year 2020, Omoniyi disclosed that KW-IRS will this year take needed steps to improve tax compliance by raising tax awareness among citizens and residents of Kwara state.

 

 

‘The year 2020, notwithstanding  the imbalances created by the Covid-19 pandemic, was remarkably progressive for Kwara State Internal Revenue Service (KW-IRS) as it generated the  sum of N6,227,099,973.42 (Six Billion, Two Hundred and Twenty Seven Million, Ninety Nine Thousand, Nine Hundred and Seventy Three Naira, Forty Two Kobo) in the fourth quarter of the year.

 

Month           KW-IRS IGR Collections (N)

October        2,765,485,579.54

November    1,287,202,252.78

December    2,183,412,141.10

Total   6,227,099,973.42

 

A breakdown of the revenue generated monthly in Q4 2020 is as presented above.

 

The Service had a remarkable Q1 before the COVID-19 pandemic took full effect on the economy. Due to the lack of physical contacts with some taxpayers for collections as well as the lockdown, there was a huge dip in revenue generated in Q2 2020 which extended into Q3 2020.

 

By the last quarter of 2020, there was a substantial recovery from the crippling effect of the pandemic on businesses and Internally Generated Revenue (IGR).

 

For the entire year 2020, KW-IRS recorded a total revenue of N19, 623,992,033.64 which was 75.48% of the N25, 997,573,296.00 revised annual budget.

 

The year 2020 recorded  quick implementation of various measures to cushion the effects of the pandemic on the taxpayers, which include  donation of relief materials, extension of the deadline for filing Annual Returns from 31st March to 30th September, 2020, 30% waiver on arrears on ground rent and land charge for property owners and land occupiers, granting of moratorium to informal sector taxpayers, suspension of all enforcement activities, waiver of penalty and interest for High Net Worth Individuals (HNIs) and Corporate Organizations and over 30 Community Impact Programmes (CIPs).

 

The Service also accelerated the implementation of its automated systems to reduce the amount of contact required with tax payers for optimal revenue generation.

 

As demonstrated by the recent achievement of $16.9m in SFTAS Annual Performance Assessment (APA) for 2019/2020 by Kwara, we have ensured accountability and transparency in our internal processes and reporting.

 

The Service has also improved significantly in our sequential and systematic reporting through the social, print, and electronic media platforms. The activities of KW-IRS in the year 2020 as well as the remarkable performance recorded irrespective of the snags caused by months of lockdown are pointers to our commitment to the welfare of taxpayers and improving the revenue drive of the State.

However,   low -tax compliance remains noticeable in the state. The Service will therefore be implementing year -round sensitization and enforcement sessions to reduce incidents of tax evasion and under remittances.

 

The year 2021 will also herald continuous automation of all relevant revenue lines which will change the mode of collection in several touch points across the state’ she said.

 

The KW-IRS boss urged the tax payers to join the revenue agency to improve the IGR and support the state government to fulfill its obligations to the residents and citizens of the state.