Business
FIRS collects N6.405trn in revenue, says it achieved over 100% target in 2021
The Federal Inland Revenue Service (FIRS) says it achieved over 100 percent of its revenue collection target for the year 2021 despite the global economic challenges occasioned by the Coronavirus pandemic, as well as the disruption of business activities in 2020 by nationwide protests.
The agency which disclosed this in a statement by Johannes Oluwatobi Wojuola, Special Assistant to the Executive Chairman, Muhammad Nami, on media and publicity, quoted him to have said that the agency collected N6.405 trillion in both oil (N2.008 trillion) and non-oil (N4.396 trillion) revenues as against a target of N6.401 trillion.
“Notwithstanding the limitations faced in 2020/2021, the Service achieved over a hundred percent of its collection target,” Nami said.
“The FIRS, in the year 2021 collected a total of N6.405 trillion in both oil (N2.008 trillion) and non-oil (N4.396 trillion) revenues as against a target of N6.401 trillion. Companies Income Tax amounted to N1.896 trillion; Petroleum Profits Tax – N2 trillion; Value Added Tax amounted – N2.07 trillion; Electronic Money Transfer Levy amounted – N114 billion; just as Earmarked Taxes amounted to N208.8 billion; among others.
“Non-oil sector contributed 68.64% of the total collection in the year, while oil sector’s contribution was 31.36% of total collection,” Nami disclosed, adding that “the Service issued certificates for the sum of N147.8 billion 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.”
The report explained that “in line with the law, 2021 income tax revenue is 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 Corona-virus 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 fulfillment 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 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,” the report further explained.
The FIRS stated that strong opposition to its statutory mandate by certain interests posed a major setback in the full implementation of its reforms.
