No New Taxes, FIRS Addresses Concerns

The Federald Revenue Service (FIRS) Inlan Chairman, Zacch Adedeji, has reassured Nigerians that proposed tax reform laws will not introduce new taxes or increase existing ones.

The assurance was made during Tuesday’s meeting with the Senate Committee on Finance in Abuja.

Adedeji emphasised that the forthcoming tax reforms aim to streamline the tax system rather than burden citizens. “The tax reform will not introduce any new taxes or raise existing rates; instead, it will reduce the number of taxes Nigerians have to pay,” he stated. He further clarified that no agencies would be merged, and no jobs would be lost during the implementation of these reforms.

The primary goal of the tax reform is to enhance the simplicity and efficiency of tax administration in Nigeria. Adedeji reassured the public that President Bola Tinubu’s current tax policies are designed to foster prosperity, focusing on returns rather than taxing necessities.

Regarding the executive bills submitted to the National Assembly for the legal framework of the reforms, Adedeji outlined four key proposals: the Nigeria Tax Bill, the Nigeria Tax Administration Act (Amendment) Bill, the Nigeria Revenue Service Bill, and the Joint Revenue Board (Establishment) Bill. He noted that these bills, once enacted, would help harmonise the numerous tax laws in the country, promote efficiency, and ensure collaboration among relevant agencies.

When questioned about the proposed renaming of FIRS to the Nigeria Revenue Service (NRS), Adedeji explained that the current name does not reflect the agency’s comprehensive service scope, especially regarding Value Added Tax (VAT), where 85 per cent of the revenue is allocated to states and only 15 per cent remains with the federal government.

Senator Sani Musa, Chairman of the Committee, highlighted that the session’s purpose was to gain insight into the objectives of the tax reform bills. He underscored the importance of tax reforms to the government’s overall agenda and called for constructive feedback from all stakeholders. He commended Adedeji for meeting revenue targets for the fiscal year while encouraging him to surpass them.

Several committee members, including Senators Seriake Dickson, Osita Isunazo, and Ahmed Wadada, praised the FIRS for its increased revenue generation, particularly in the non-oil sector.