Economy

FIRS Assures Nigerians On Proposed Tax Reform Laws

LAGOS – The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has reassured Nigerians that the proposed tax reform laws will not introduce new taxes or increase existing ones.

During an interactive session in Abuja with Senator Sani Musa, APC Niger East, who leads the Senate Committee on Finance, Adedeji addressed concerns regarding the tax reforms, stating, “The tax reform will not introduce any new taxes or increase the percentages of existing ones; instead, it aims to reduce the number of taxes paid by Nigerians.”

He emphasized that the existing tax policies introduced by President Bola Tinubu are designed to tax prosperity rather than poverty, focusing on returns rather than investments. “No agency will be merged in the process of carrying out the reform, and no jobs will be lost. The tax reform primarily seeks to enhance the simplicity and efficiency of tax administration in Nigeria,” he added.

Adedeji also discussed the executive bills forwarded to both chambers of the National Assembly to legalize the reforms. The four bills include:

Nigeria Tax Bill

Nigeria Tax Administration Act (Amendment) Bill

Nigeria Revenue Service Bill

Joint Revenue Board (Establishment) Bill

He noted that, once passed, these bills would help harmonize the multiple tax laws in the country, drive efficiency and modernization, simplify tax laws, ensure synergy among involved agencies, increase efficiency in government savings, promote transparency in revenue collection, align with international standards, and broaden Nigeria’s tax base.

When questioned about the proposed change of FIRS to Nigeria Revenue Service (NRS) in one of the bills, Adedeji explained that the current name does not encompass the full scope of the agency’s services, particularly concerning Value Added Tax (VAT), of which 85% is remitted to the states, while the federal government retains only 15%.

Senator Sani Musa, Chairman of the Committee, noted that the purpose of the interactive session was to receive an update from the FIRS on the objectives of the tax reform bills. He stated, “Tax reforms lie at the heart of the government’s agenda and require constructive input from all stakeholders.” Musa commended Adedeji for meeting the revenue targets set for the fiscal year and urged him to exceed those targets.

Other committee members, including Senators Seriake Dickson (PDP, Bayelsa West), Osita Isunazo (APC, Imo West), and Ahmed Wadada (SDP, Nasarawa West), also praised the FIRS chairman for the agency’s increased revenue generation, particularly in non-oil sectors.

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