Abuja, Feb. 20, 2024: The Federal Inland Revenue Service (FIRS) has projected a revenue target of N19.4 trillion for 2024 fiscal year as against the N11 trillion collected in 2023.
Executive Chairman of FIRS, Dr Zacch Adedeji made this known on Monday in Abuja while presenting the Service’s 2024 Budget before the Senate Committee on Finance.
Adedeji said that for 2024 proposed budget, because of what they had done in the preceding year of N12.3 trillion, the target received from the Medium Term Expenditure Framework (MTEF) was N19.4 trillion.
This, he said was divided into oil revenue of N9.6 trillion and non-oil revenue to be N9.4 trillion.
“And our expected cost of collection which is our revenue to run the service is N446 billion.”
He further said that the revenue target for 2023 set by the MTEF was to collect roughly N10 trillion.
“This target was reviewed in the year to N11.1 trillion but our actual collection for the year was N12.3 trillion which is 11 per cent above the set target.
“This was achieved by the internal reform being carried out by the federal inland revenue service toward effective and efficient collection.
“Secondly, the implication of exchange rate and removal of fuel subsidy which has led to increase in the revenue accrueable to federal government most especially for those revenue that are dollar-denominated.”
Adedeji also said that President Bola Tinubu had seen multiple taxes as a major problem.
“The president has set up the Presidential Committee on Tax Reform and Fiscal Policy. And the mandate he gave to the committee is that by the end of their term, the President advised that we want only single digit tax in this country.
“Today, we have more than 62 types of taxes being collected. But the sad news about that is that less than eight out of those 62 taxes accounted for 97 per cent of the collection.”
He said that FIRS was working through the Joint Tax Board and the presidential committee to harmonise all taxes.
“This is to ensure that there would be only about eight or nine taxes that would be run at the states and the federal government levels.”
In his remarks, Chairman of the Committee, Sen. Sani Musa said that
FIRS should not only concentrate on getting revenue from the revenue generating agencies.
“I believe FIRS should also look at its engagements on how taxable Nigerians can be made to be paying their taxes.
“It is only when we have these taxes that we will be able to develop our infrastructure, engage our teeming youths that have been there unemployed.
“You should even look at the possibilities in terms of growth and development to see how we can aggregate our revenue ratio to our growth ratio as well.
“This is because today, if you look at the data you will know that we are lagging.
“What we are generating in Nigeria should have been more. But anywhere in the world, taxes do not develop a nation. Taxes are part of one aspect that will contribute to that development.”
Musa called for a review of the tax laws in the country to ensure development.
“The tax administration completely needs serious reengineering. Nigerians are facing a lot of difficulties.
“Today, with what is going on, the volatility in the foreign exchange has also affected them. There is need for a complete review of our tax system,” Musa said.
