FIRS Surpasses 2021 Target, Generates N6.4trn

The Federal Inland Revenue Service (FIRS) generates N6.405 trillion in 2021 despite the economic downturn experienced in the globe due to the coronavirus pandemic.

The Executive Chairman of FIRS, Muhammad Nami, stated that the figure was over a hundred percent of its revenue target for the year 2021.

“The FIRS, in the year 2021 collected a total of N6.405tr in both oil (N2.008tr) and non-oil (N4.396tr) revenues as against a target of N6.401tr. Companies Income Tax amounted to N1.896tr; Petroleum Profits Tax amounted to N2tr; Value Added Tax amounted to N2.07tr; Electronic Money Transfer Levy amounted to N114 billion; Earmarked Taxes amounted to N208.8bn; among others.

He added that non-oil sector contributed 68.64% of the total collection in the year, while the oil sector’s contribution was 31.36% of total collection.

“The Service issued certificates for the sum of N147.8bn tax credit to private investors and NNPC for road infrastructure under the Road Infrastructure Development Refurbishment Investment Tax Credit Scheme created by Executive Order No. 007 of 2019.”

In another report released titled “FIRS 2021 Performance Update”, the agency explained that in line with the law, 2021 income tax revenue was a function of the outcome of business activities in 2020.

“In that year, the country entered into a second economic recession within five years. The recession was occasioned by five months of lockdown caused by the coronavirus pandemic. To compound the economic challenges of COVID-19 pandemic, business activities were disrupted by the End-SARS protests.”

It further stated that the deployment of technological tools was a game-changer for the Service.

“Upon the coming into office of the current management, the Federal Inland Revenue Service (FIRS) began strategic administrative and operational reforms; and the implementation of new policies that would improve its capacity towards the fulfilment of its mandate.

“The deployment of a new automated tax administration system, the “TaxPro Max” in June 2021 was a game-changer.

“With the solution, taxpayers experienced the ease of registration, reporting, payment and issuance of Tax Clearance Certificates while the Service experienced greater efficiency in the deployment of resources thereby leading to improved revenue collection.”