Economy

Prepare For Tax Reform, FIRS Tasks State Governors

LAGOS – State Governors have been tasked to brace up for the tax reforms about to be released.

The Chairman, Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji gave this premonition at 155th Meeting of the Joint Tax Board (JTB) in Suleja, Niger State.

Adedeji emphasized the importance of a robust Internal Generated Revenue (IGR) system, enjoining the state governments on the need to optimise revenue collection “for socioeconomic and human development.”

According to him, “at this critical point in time, it is necessary to strengthen the fabric of our IGR capacity to ensure that the revenue administration processes, especially at the subnational level, become as efficient as possible to optimise the collection of IGR for socioeconomic and human development,” Dr. Adedeji stated.

Adedeji acknowledged the ongoing tax reform efforts led by the Presidential Fiscal Policy and Tax Reforms Committee, stressing that “we must begin to look ahead to how these reforms will impact revenue authorities across all government levels”.

He said, Tax Reforms panel proposes 1% ‘Cost of collection’ for Customs, FIRS, NPA and others.

He expressed confidence that diligent implementation of innovative approach could lead to a monthly IGR target of N5 billion for Niger state.

Governor Mohammed Umar Bago of Niger State, represented by Mustapha Ndajiwo, the Commissioner for Budget and National Planning, presented a case study of successful IGR improvement in the state.

Ndajiwo revealed a rise in Niger State’s IGR, with an average monthly collection of N2,621,710,688.94 between January and May 2024, compared to N1,806,280,088.25 in the same period last year. May 2024 alone saw a collection of N3,508,389,805.20, representing a 45 per cent increase.

Ndajiwo attributed this growth to three key strategies: Niger State implemented strategic reforms and innovative approaches to tax collection.

He said the state prioritized transparency, efficiency, and taxpayer education and Niger State actively collaborated with the Joint Tax Board, a forum for tax authorities across all government tiers.

This collaboration allows for the exchange of ideas, best practices, and solutions to share challenges in tax administration and revenue optimisation.

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