FIRS targets N10.1trn revenue in 2022, mulls road tax law

19 Aug FIRS targets N10.1trn revenue in 2022, mulls road tax law

The Federal Inland Revenue Service (FIRS) has projected generating N10.1 trillion revenue for the 2022 financial year, according to its chairman, Muhammad Nami.

He disclosed that the Service is working on a bill to introduce road taxes for users to shore up its revenue.

He made the disclosure when he appeared before the House Committee on Finance at the interactive session on the Medium Term Expenditure Framework (MTEF) on Wednesday in Abuja.

According to him, the agency will send the bill to the National Assembly for consideration and passage.

Nami said though the Service is targeting N10 trillion for the entire federation in the 2022 fiscal year, the money will not be sufficient to fix all the roads in Nigeria.

Giving the breakdown of the revenue performance of the Service 2021, he said the 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 (second quarter) achieved N2.762 trillion representing 43% 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% increase.

“While the oil revenue collected for the same period was N644 billion against N971 billion collected in the corresponding period representing 33.68% decrease in the oil collection.”

He also disclosed that the Petroleum Industry Bill (PIB) that was recently assented to could affect revenue projection in 2022, noting that the implementation of the Act could present some challenges for the Service.

“We expect that with the new Petroleum Industry Act, there are some reconciliations that will be carried out that might affect the projections for 2022. We expect that there is a new expenditure that will be rolled over to the new regime. So, what we are trying to do is to ensure that we adjust those expenses for the year 2022.

“We know that if we do that, it is going to affect our ability to collect more revenue in that area. There are currently some allowances they have been able to use, but they will use them because this will be a new regime. It is not going to be the one that has investment tax allowance anymore. It is going to be based on actual performance.”