The Federal Inland Revenue Service (FIRS) has expressed fear that PIA would reduce government revenue expected from the Petroleum Profit Tax next year.
FIRS chairman, Muhammad Nami, stated this yesterday at the ongoing 2022-2024 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF & FSP) during interaction with the House of Representatives Committee on Finance and Ministries, Departments and Agencies (MDAS) at the National Assembly Complex, Abuja.
The agency projects to generate about N10.1 trillion revenue in 2022 financial year. the agency, however, said N2.053 trillion out the amount will be remitted to the federal government while the balance will be transferred to states and local governments areas.
Nami said the FIRS generated a total revenue of N4.950 trillion against budgeted N5.076 trillion representing about 98 per cent, adding that the non-oil component contributed N3.435 trillion and oil aspects brought in N1.515 trillion.
According to him, the cost of collection (4% net of 2 per cent Nigerian Customs Service NCS VAT) of N130.45 billion was achieved against the budget of N180.76 billion to fund the three operational expenditure heads for the year.
While reviewing the 2021 budget performance, the FIRS chairman said: “The Service 2021 approved MTEF projected revenue collection was N6.40 trillion representing N1.64 trillion (26%) and N4. 76 trillion (74%) for oil and non-oil respectively.
“The Service as of June 30, 2021 (half-year) achieved N2.762 trillion representing 43 per cent of approved projected revenue collection. The non-oil revenue collection during the period was N2.118 trillion against N1.5 trillion collected in the correspondIng period representing 41. 2 percent Increase.”