11 banks pay N99.27bn tax in 9 months

As the Federal Government strengthens its revenue generation in non oil & Gas sector, investigation by Busness247 News Online has revealed that 11 banks have paid N99.27 billion in tax at the end f third quarter of 2016.

The considered banks had paid N90.16 billion in prior nine months of 2015, an indication that Federal Inland Revenue Service (IFRS) has enhanced its strategy in bank’s tax collection this year.

The breakdown by our correspondent revealed that Tier-I banks (banks with robust assets and staff strength) tax expenses significantly increased in the period under review.

For instance, First Bank of Nigeria Holdings Plc (FBN) tax expenses rose by nearly 60 per cent from N9.34 billion to N14.9 billion in nine months of 2016 while Guaranty Trust Bank Plc recorded N20.9 billion tax expenses in nine months of 2016, 24 per cent above N16.9 billion recorded in nine months of 2015.

Access Bank Plc, another Tier-I recorded a growth of 21.4 per cent in tax expenses from N12.28 billion to N14.9 billion.

United Bank for Africa Plc recorded tax expenses that rose by 5.4 per cent to N9.3 billion from N8.8 billion while Zenith Bank Plc on the other hand had recorded a marginally growth of 1.1 per cent in tax expenses to N21.2 billion as against N20 billion recorded in nine months of 2015.

However, Ecobank was the only Tier-I bank with decline in tax expenses that moved from N18 billion to N15 billion, representing a decline of 14 per cent.

From the Tier-II banks, Union Bank of Nigeria Plc was the only commercial bank with significant growth in tax expenses.

The bank tax expenses rose by 25.2 per cent to N263 million to N210 million.

Despite recorded decline in profit after tax, Diamond Bank Plc recorded 86 per cent decline in tax expenses from N2.6 billion to N381 million.

Following Diamond Bank is Fidelity Bank Plc that recorded 54 per cent decline in tax expenses from N2.3 billion in nine months of 2015 to N1.08 billion in nine months of 2016.

Others with decline in tax expenses include Sterling Bank Plc and Wema Bank Plc.

Sterling Bank’s tax expenses moved from N756.5 million to N534.4 million while Wema Bank recorded a decline of 2.3 per cent in tax expenses from N229.27 million to N224 million in nine months of 2016.

The FG had set a target of N5 trillion revenue generation for FIRS in 2016

Minister of Finance, Mrs. Kemi Adeosun, underscored the importance of the agency’s attainment of its 2016 target to the Federal Government’s policy direction.