Senate Approves N216.646bn FIR’s 2021 Budget
The Senate has approved N216, 646, 579, 231.00 as 2021 budget for the Federal Inland Revenue Service (FIRS).
The Senate also approved the upward review of the revenue target of FIRS from N5.076 trillion last year to N7.61 trillion this year.
These resolutions of the upper chamber followed its consideration of a report by the Senate Committee on Finance.
Chairman of the Committee, Senator Solomon Adeola, said FIRS targets total revenue collection of N7.61 trillion for the year as against N5.076 trillion budgeted last year, which represents about 49.90 per cent increase above the corresponding year’s budget.
According to the lawmaker, out of the proposed total collection of N7.61 trillion, N5.645 trillion is expected from non-oil components, while N1.964 trillion is expected from oil components.
Out of the proposed expenditure of N216.65 billion for the fiscal year, Adeola said N107.52 billion is for personnel cost; N47.22 billion for overhead cost; and N61.9 billion for capital cost, as against N97.36 billion, N43.64 billion and N27.80 billion budgeted for the three expenditure heads in 2020.
He noted that the cost of collection to the service was pegged at four per cent of non-oil revenue.
He, however, disclosed that, there will be marginal reduction in the taxable income of tax payers due to the effect of COVID-19 pandemic.
“The Service seeks to continuously improve its technology for automated tax collection across all sectors of the economy through e-filing, e-registration, e-payment etc, to facilitate ease of doing business with tax payers,” Adeola said.
He emphasised that there would be no recruitment into the FIRS this year.
He said there is need to intensify tax payer education and engagement with a view to improve compliance with tax laws.
According to him, the exemption of some categories of tax payers from payment of tax as enshrined in the 2019 and 2020 Finance Act would impact on revenue collection.