Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), has declared that the federal government’s tax reforms will not impose new taxes or raise existing tax rates.
During a Tuesday interactive session with the Senate Committee on Finance in Abuja, Adedeji revealed this.
He told Nigerians that neither new taxes nor increases to current ones will be part of the ongoing tax changes.
“Tax reform will lower the amount of taxes paid by Nigerians, but it won’t impose any new taxes or raise the percentage of the ones that already exist,” he stated.
“No agency will be merged in the process of carrying out the reform and no job will be taken from anybody.
“The tax reform basically seeks to increase the simplicity and efficiency of tax administration in Nigeria,”
Adedeji said that in order to formally implement the tax reform, four executive legislation had already been sent to the National Assembly’s two houses.
The Nigeria Tax Bill, Nigeria Tax Administration Act (amendment) Bill, Nigeria Revenue Service Bill, and the Joint Revenue Board (Establishment) Bill are among the bills, he clarified.
He pointed out that if the measures were approved, they would promote efficiency and modernisation by bringing the nation’s various tax laws into harmony.
He said that the proposal will improve revenue collection transparency, streamline tax regulations, and foster collaboration among pertinent institutions. The proposals also seek to broaden Nigeria’s tax base and bring it into compliance with international norms.
Adedeji clarified that the existing name does not accurately reflect the agency’s range of activities when asked why one of the proposed legislation would rename the Federal Inland Revenue Service (FIRS) the Nigeria Revenue Service (NRS).
Senate’s Response
Sen. Sani Musa, the committee’s chairman, said in his remarks that the Federal Inland Revenue Service (FIRS) was to brief the committee on the goals of the tax reform measures during the interactive session.
“Tax reforms are central to the government’s agenda and require meaningful contributions from all stakeholders,” Musa noted.
He commended the FIRS leadership for meeting the fiscal year’s income goals and urged them to surpass them.
