The Federal Inland Revenue Service (FIRS) is planning an ambitious revenue collection of N5.9 trillion in the 2021 fiscal year and non-oil and oil components are expected to contribute N4.26tr and N1.64tr respectively.
FIRS Chairman, Muhammad Nami, disclosed this while presenting the proposed 2021 budget of the agency and the performance of its 2020 budget before the House of Representatives Committee on Finance, Thursday.
“Out of the proposed total collection of N5.9tr, Non-Oil and Oil components are expected to contribute N4.26tr and N1.64tr respectively.
“Consequently, the cost of collection (7 per cent net of 2 per cent NCS VAT) is projected at N289.25 bn against the budgeted N180.76bn in 2020 to fund the three operational expenditure heads for the year.
He however disclosed that a series of factors have been taken into consideration as regards the preparation and execution of the budget projections.
“There will be a marginal reduction in the taxable income of taxpayers due to the effect of COVID-19 pandemic.
“The exemption of some categories of taxpayers from payment of tax as enshrined in the 2019 & 2020 Finance Act will impact on revenue collection,” he added. While giving an overview of the FIRS 2020 budget performance before the committee, Nami disclosed that the service achieved a total revenue collection of N4.950tr against budgeted N5.076tr representing about 98 per cent.
“Out of the total collection of N4.950tr, non-oil and oil components contributed N3.435tr and N1.515tr respectively.”
The FIRS chairman further disclosed that the sum of N83.70bn and N34.57bn were expended on Personnel and Overhead Costs against the budgeted N97.36bn and N43.64bn respectively.