The Federal Inland Revenue Service may lose about N92 billion which it is expected to earn as cost of collection, If the judgement of the Federal High Court asking states government to collect Value Added Tax in their domain is upheld by the Appeal Court.
The law setting up the FIRS allows the agency some percentage, as determined by the National Assembly, as its cost of revenue collection from non-oil taxes before remitting the same into the federation account.
A report on FIRS official website revealed that the service collects four per cent as cost of collection for non-oil revenue collected.
The FIRS is one of the agencies of the government that generates revenue for sharing by the three tiers of government.
Others are the Nigeria Customs Service and the Nigerian National Petroleum Corporation.
The highest source of revenue for the FIRS is Petroleum Tax followed by VAT, others include Stamp Duty, Company Income Tax.
In the 2016 fiscal period, the FIRS received the sum of N85.99 billion as cost of revenue collection, while it got N100.3 billion as the cost of revenue collection in 2017.