The Senate, yesterday, approved the sum of N216.646 billion as expenditure for the Federal Inland Revenue Service (FIRS) for the 2021 fiscal year. The Red Chamber also gave its approval for the Service to review upward its revenue target from N5.076 trillion proposed for the year 2020 to N7.61 trillion in 2021.
The approval was made sequel to the consideration of the report presented during plenary by the Senate Committee on Finance. The Chairman of the Committee, Senator Solomon Adeola (APC, Lagos West), in his presentation, said that the Federal Inland Revenue Service proposed a total revenue collection of N7.61 trillion for 2021 as against N5.076 trillion budgeted in 2020, a figure which represents about 49.90 percent 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.
He added that the cost of collection from four per cent net of two per cent NCS Value Added Tax (VAT) was projected at N216.65 billion to fund personnel, overhead and capital costs in 2021, as against the sum of N180.76 billion budgeted for in 2020.