Yesterday, the House of Representatives Customs and Excise Committee raised the revenue target for the Nigerian Customs Service (NCS) in FY2021 from N1.465 trillion to N1679 Trillion naira.
The committee made the increase when NCS Comptroller General Hameed Ali appeared in the defense of the 2021 budget proposals and the execution of the 2020 budget.
The Chairman of the Committee, the Hon. Leke Abejide, said lawmakers’ decision was based on reducing the effect of COVID-19 on economic activities with the availability and administration of vaccines and the approval given to the NCS on the excise proposal on fizzy drinks.
Abejide acknowledged that despite the negative effect of COVID-19, the NCS was able to generate 2,211 billion naira, “so it can do better now that the pandemic is contained”, and tasked the agency with meeting the targets from the budget.
According to him, “Initially, before the advent of the COVID-19 pandemic, the sum of 1,679 trillion naira was mandated for the service to generate, and despite the COVID-19, you were able to generate 2,211 billion naira and collected 350 naira. billion in value added taxes (VAT). So, this is to tell you that now that COVID-19 is under control thanks to the vaccine and no lockdowns, as well as the border is open, and when I checked with the chairman of the finance committee, your drink proposal carbonated or excise is now approved.
“So when we look at all of this, we see that we cannot speak up with this proposal and that is our conclusion. We want to stick to the original goal that was given to you last year. We are not going to increase it, we have to stay on it at 1,679 billion naira and we are not going to influence what you have proposed or the objective you have set on the VAT issue.
Previously, Customs boss Ali, while defending the performance of the 2020 budget, said the NCS had collected a total income of 1.211 trillion naira for the period January to December 2020.
He explained that the Service had also collected the sum of 350.63 billion naira in VAT on imports from January to December 2020, thus bringing the total collection to 1,562 billion naira for the period under review.
Regarding the 2021 budget, Ali said the revenue target for the year based on the Medium Term Expenditure Framework (MTEF) and approved by the National Assembly is set at 1,465 billion naira, of which 1,267 billion naira naira for the federation and 198 billion naira. for non-federation.