The House of Representatives on Tuesday, increased the revenue target for the Nigerian Customs Service in the 2021 budget year from 1.465 trillion naira, to
1.679 trillion naira.
The House Committee on Customs and Excise, made the increase when the Comptroller General of the Nigeria Customs Service, Hameed Ali, appeared before the Lawmakers in defence of the 2021 budget proposals and performance of the 2020 budget.
The increase was carried over from the initial approved target in the 2020 budget before the effect of Covid-19 pandemic, which caused a revision to 1.380 trillion naira.
The Committee said its decision is based on the reduction in the effect of Covid-19 on economic activities, with the availability and adminstration of vaccines and the approval given to the Service, for proposal for the carbonated drinks to be excisable.
The Committee acknowledged that, despite the adverse effect of Covid-19, the Nigerian Customs Service was able to generate
over 2.211 trillion naira and expressed optimism on its future performance as according to the Committee, the pandemic is being contained.
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While defending the 2020 budget performance, the Customs Boss, Hameed Ali said that, the Service collected a total revenue of 1.211 naira Trillion for the period of January to December 2020 and when compared to the approved revenue target of the same period January to December 2019, the Service surpassed its target by an over 114.78 Billion, which is a 10.47 percent mark.
He also explained that the Service also collected the sum of 350.63 billion naira as Value Added Tax on Imports from January to December 2020, thereby bringing the total collection to 1. 562 Trillion naira for the period under review.
On the 2021 budget, Hameed Ali said the revenue target for the year which is based on the Medium-Term Expenditure Framework, MTEF approved by the National Assembly, is set at 1.465 trillion naira consisting of 1. 267 trillion naira for the Federation and 198 billion for non-Federation.
Hameed Ali identified e-customs project, tariff review on vehicles, reintroduction of import taxes on petroleum products, expansion of excisable items border reopening, stakeholders collaboration, amongst others as budget strategies, to improve revenue generation by the Service in 2021.
Edited by Tunde Orebiyi.
