FIRS Makes History – Generates N6.4trn Revenue In 2021

Federal Inland Revenue Service (FIRS) has generated N6.4 trillion as revenue in 2021, which is the highest in its history.

The 2021 revenue collection surpassed the N5.3 trillion generated in 2019 under the leadership of Babatunde Fowler.

Special Assistant on Media and Communication to the Chairman of FIRS, Johannes Oluwatobi Wojuola said this in a statement released on Thursday.

According to Wojuola, the Executive Chairman of FIRS, Muhammad Nami said despite the limitations faced in 2020/2021, the agency 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 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 69 percent of the total collection in the year, while oil sector’s contribution was 31 percent 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.”

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

The report read, “In that year, the country entered into a second economic recession within 5 years. The recession was occasioned by 5-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.”

According to the report, the deployment of technological tools was a game-changer for the Service.

The report further stated that “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.”

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