Senate To Consider Ways To Increase FIRS Operational Revenue
The Senate Committee on Finance has 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, FIRS from its operation from its present approved 4%.
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 approved the proposed 7% proposed by the chairman of FIRS, Mr. Mohammed Nami.
Senator Adeola said that FIRS should look at other alternatives of revenue generation for its operations from other sectors of revenue beyond a blanket increase of cost of collection for its operations aimed at generating increased revenue for the Federal and State Government.
As a way of increasing revenue of the Government, Senator Adeola disclosed that his Committee is to begin a full blown investigation of all 467 revenue generating agencies of the Federal Government to ascertain compliance with remittances into the consolidated revenue account of the government as well as remittances of 1% Stamp Duty by all agencies on contracts it awarded stressing that for government to execute projects and provide services, revenue from the oil sector is now grossly insufficient.
Earlier on, Mr. Mani reviewed the performance of the 2020 Budget which grossed in N4.950 trillion against a budgeted N5.076trillion representing 98% adding that the cost of collection of 4% achieved N130.45billion against a budget of N186.76billion.
The FIRS Chairman stated that in the 2021 Budget the revenue collection agency is proposing a total revenue collection of N5.900 trillion representing a 16.22% increase above last year budget of N5.076 trillion adding that the cost of collection is projected at N289.25biilion at 7% to take care of the increasing cost of operation and planned expansion of operation for new sources of revenue.
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 COVID-19 social distancing rules adding that presently some of the staff are working remotely from home.