…Reveals Operational Difficulties
The Chairman of Federal Inland Revenue Service , Mohammed Nami, has stated that the agency is targeting total revenue collection of about N5.900 trillion in the 2021 representing a 16.22 per cent increase above last year’s budget of N5.076 trillion.
Nami said, that the cost of collection is projected at N289.25biilion at 7 per cent to take care of the increasing cost of operation and planned expansion of operation for new sources of revenue.
He however, revealed that the agency is struggling to pay salary, therefore will not be able to recruit this year.
Mani while presenting the 2021 budget of the agency before the Senate Committee on Finance reviewed the performance of the 2020 Budget which grossed in N4.950 trillion against a budgeted N5.076trillion representing 98 per cent, adding that the cost of collection of 4 per cent achieved N130.45billion against a budget of N186.76billion.
He further disclosed that the agency will not be recruiting any staff in the year 2021 as there are not enough accommodation yet even for existing staff in face of COVID-19 social distancing rules. He said that presently, some of the staff are working remotely from home.
At the budget defence, Senate Committee on Finance had stated that the Senate as a whole will consider the possibility of approving an increase in the cost of collection that accrue to Federal Inland Revenue Service from its operation from its present approved 4 per cent.
Disclosing this during the 2021 Budget Defence of FIRS, Senator Solomon Adeola (APC, Lagos West), chairman Senate Committee on Finance stated that whatever is recommended by his committee would be presented for approval by the Senate in plenary as the committee cannot unilaterally approve the proposed 7 per cent proposed by the chairman of FIRS.
Senator Adeola said that FIRS should look at other alternative of revenue generation for its operations beyond a blanket increase of cost of collection for its operations aimed at generating increased revenue for the Federal and state government.