Senate Okays N216.646bn FIRS’ 2021 Budget

The Senate has approved N216,646,579,231.00 as the 2021 budget for the Federal Inland Revenue Service (FIRS).

It also approved an upward review of the revenue target of FIRS from N5.076 trillion in 2020 to N7.61 trillion in 2021.

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 a total revenue collection of N7.61 trillion for 2021 as against N5.076 trillion budgeted in 2020, a figure which represents about a 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 2021 fiscal year, Adeola said the sum of 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, respectively.

He noted the Cost of Collection to the Service was pegged at four (4) per cent of Non-Oil revenue.

He, however, disclosed that “there will be a marginal reduction in the taxable income of taxpayers due to the effect of the 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 taxpayers”, Adeola said.

He emphasised that there would be no recruitment into the FIRS this year.

He said there is a need to intensify taxpayer education and engagement with a view to improve compliance with tax laws.

According to him, the exemption of some categories of taxpayers from payment of tax as enshrined in the 2019 and 2020 Finance Act would impact on revenue collection.

Source: THE NATION