MINA Blog- The Federal Inland Revenue Service (FIRS) has surpassed its revenue collection target of N6.401 trillion for 2021 by N4 billion or 0.062% with N6.405 trillion collection, according to a statement by Johannes Wojuola, Special Assistant on Media and Communication to the Executive Chairman, FIRS .
The statement said that Muhammad Nami, FIRS Executive Chairman, made this known while giving the “FIRS 2021 performance update,” adding that despite the limitations faced in 2020/2021, the Service achieved over 100 per cent of its collection target.
Specifically, the statement issued on Thursday 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.”
The statement aid the achievement was in spite of the global economic challenges caused by the COVID-19 pandemic.
Nami said, “Companies Income Tax amounted to N1.896 trillion; Petroleum Profits Tax amounted to N2 trillion; Value Added Tax amounted to N2.07 trillion; Electronic Money Transfer Levy amounted to N114 billion; Earmarked Taxes amounted to N208.8 billion; among others.
“Non-oil sector contributed 68.64 per cent of the total collection in the year, while the oil sector’s contribution was 31.36 per cent of the total collection.
“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 statement further explained that in line with the law, 2021 income tax revenue was a function of the outcome of business activities in 2020.
It also explained that during that period, the country entered into a second economic recession within 5 years as a result of the 5-months lockdown caused by the coronavirus pandemic.
It noted that in compounding the economic challenges of the COVID-19 pandemic, business activities were disrupted by the End-SARS protests.
It, however, stressed that the deployment of technological tools by the FIRS in its operations 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 to fulfil its mandate.
“The deployment of a new automated tax administration system, the “TaxPro Max” in June 2021 was a game-changer which enabled taxpayers to experience ease with registration, reporting, payment and issuance of Tax Clearance Certificates.
“This had made the Service experience greater efficiency in the deployment of resources, thereby, leading to improved revenue collection.
“This was in spite of the strong opposition to FIRS statutory mandates by certain interests, which posed a major setback in the full implementation of its reforms,” Nami was quoted as saying.