The Senate has approved N215.8 billion as budget for the Federal Inland Revenue Service (FIRS) for the 2022 fiscal year.
The budget was approved in plenary on Wednesday.
It was sequel consideration of a report by the Senate Committee on Finance, presented by the chairman, Adeola Olamilekan Adeola (APC, Lagos West).
Of the total amount approved for the FIRS, N119.7 billion was earmarked for Personnel Cost, N60.2 billion for Overhead Cost and about N36 billion for Capital Cost.
Mr Olamilekan informed the Senate that the 2022 projected Cost of Collection (COC) of N215.81 billion was slightly lower than the 2021 approved revenue which stood at N216.6 billion.
The difference, he said, represents a CoC decrease of N840 million on the overall projected non-oil revenue.
He also explained that personnel cost was based on staff strength on the payroll including social benefits such as NHIS, pension contribution and anticipated performance bonus for the year.
He attributed the increase in overhead projection to the need for ”more robust operational activities which has a direct relationship with overhead budget lines such as electricity tariff, generator fuel cost, legal services due to tax disputes, local travels and transport and critical ones that relate directly to tax collection and administration”.
For capital cost, he said estimates reported include on-going and new projects which are to be executed during the 2022 financial year – a result of expected completion of projects, payment of retention on completed projects and some new projects for effective revenue drive.
2021 budget performance
In a review of the FIRS‘ 2021 budget performance, the lawmaker said as of October 31, 2021, the agency collected N4.5 trillion – of the total projected revenue target of N7.6 trillion.
This, he said, represents 60 per cent achievement.
“The performance based on the target for the period of N6.3 trillion represents 71 per cent achievement.
“The non-oil component of the tax collected stands at N3.5 trillion and represents 63 per cent achievement of total non-oil revenue target of N5.6 trillion.”
The lawmakers thereafter proceeded into the Committee of Supply and approved the 2022 budget for the agency.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
TEXT AD: To advertise here . Call Willie +2347088095401…