The House of Representatives on Tuesday approved the sum of N168.809 billion budget for the Federal Inland Revenue Service (FIRS) for the 2020 fiscal year.
The House gave the approval after the adoption of the four clauses of the report considered during the Committee of the Whole.
Chairman, House Committee on Finance, Hon. Abiodun Faleke who laid the report explained that a total expenditure of N168,809,476,220 is required by FIRS to defray the proposed Personnel, Overhead and Capital expenditure cost of the service during the fiscal year 2020.
“The digitalisation of all processes in the administration of tax in FIRS should be undertaken so as to catch up with rapidly increasing economic activities most often carried out online without physical presence.
“FIRS (Establishment) Act and other tax laws be amended to make it possible for FIRS to modernise its operations with relevant technology,” he explained.
He added that FIRS requires total sum of N100 billion Intervention Fund which he described as ‘One-Off Special Purpose Fund’ for the year 2020.
According to him: “This fund will expressly assist the FIRS fund its immediate but pressing needs such as completion of the FIRS Head Office building complex within twelve months, six Training Schools, 30 Prototype Tax Operations Offices, Purpose-built facilities for efficient taxation of the Upstream Petroleum Industry and ICT infrastructure to identify and track digital transactions.”
While presenting the 2020 budget proposal to the Committee on Monday, the FIRS Executive Chairman, Mr. Mohammed Nami explained that total sum of N446 billion was projected as revenue from Stamp Duty in 2020 against the sum of N18.19 billion realised in 2019, adding that the Service had earlier proposed the sum of N70 billion for 2020.
In the bid to realise the N446 billion revenue target approved in the MTEF and 2020 Appropriation Act passed by the National Assembly and assented to by Mr. President, the FIRS Chairman unveiled plans to introduce flagship tax of 1% on total contract sum being awarded across the country henceforth which is to be paid by Service Provider/Contractor while the statutory Value Added Tax (VAT) of 7.5% is to be borne by consumers.
Breakdown of the projected revenue include N1.56 trillion from oil revenue and N4.5 trillion from non-oil revenue for the year 2020.
As encapsulated in the FIRS (Establishment) Act, out of the 4% total cost of collection worth N180 billion for this year, the Service is to retain N168 billion while N11.2 billion as 2% cost of collection for Customs for revenue to be collected on behalf of FIRS.
He added that the revenue projection for 2020 was predicated on assumptions approved in the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Policy Paper (FSP) including 1.8mbpd crude production against 2.3mbpd in 2019; $28 per barrel crude oil revenue; 7.5% Value Added Tax (VAT); N360/$ exchange rate as well as 10,700 staff.
While giving details of the Service’s stewardship for 2019 fiscal year, the FIRS Chairman, said: “As against the total revenue projection of N8.97 trillion in 2019 fiscal year, the Service realised total sum of N5.026 trillion representing 58.64% of the total revenue.
Breakdown of the revenue showed that the sum of N2.9 trillion against the actual of N3.18 trillion was realised from non-oil while the balance was realised from the Petroleum Profit Tax (PPT).
He added that the Service incurred expenditure worth N113 billion actual expenditure against as N146.5 billion projected in 2019.
The Service also realised total sum of N116.29 billion as 4% cost of collection and ceded total sum of N10 billion to Nigeria Customs Service (NCS) being 2% cost of collection for the revenue collected on behalf of FIRS in the year under review.
NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
Journalists Barred As Panel Grills Magu In Aso Rock
The acting Chairman of the Economic and Financial Crimes (EFCC), Ibrahim Magu, is currently being grilled by a panel set up to investigate alleged infractions against him… Read Full Story
Hushpuppi Hires Michael Jackson’s Former Lawyer To Represent Him In Court
Ramon Olorunwa Abbas, popularly known as Hushpuppi, a suspected internet fraudster and Instagram celebrity, who was arrested recently has reportedly hired a former lawyer to Michael Jackson, Mark Geragos, to represent him in court… Read Full Story
COVID-19: Trump Govt Threatens Foreign Students With Expulsion
International students who are pursuing degrees in the United States will have to leave the country or risk deportation if their universities switch to online-only courses, Immigration and Customs Enforcement… Read Full Story
PHOTOS: After Four Months, Oyo Schools Reopen Monday
After about four months, students in primary six, JSS3 and SSS3 in Oyo State resume at their various schools on Monday. As a way to curtail the spread of COVID-19 Governor Seyi Makinde had on March 21, ordered the closure of all schools in the state… Read Full Story
Military Air Strikes Destroy Dwelling Place Of Boko Haram Leaders In Borno ― DHQ
The Defence Headquarters (DHQ), on Monday, said that in renewed efforts to end insurgents activities in the country, the Air Task Force of Operation Lafiya Dole has destroyed the dwellings of Boko Haram Terrorists (BHTs) leaders and neutralised some of their fighters in separate airstrikes conducted at Parisu and Bula Bello in… Read Full Story
and then