FIRS Clarifies Tax Reforms, Assures No New Taxes

 

The Federal Inland Revenue Service (FIRS) has reassured Nigerians that ongoing tax reforms will not lead to the introduction of new taxes or an increase in existing ones. This clarification was made by FIRS Chairman, Zacch Adedeji, during an interactive session with the Senate Committee on Finance at the National Assembly in Abuja.

In response to questions raised by committee members, led by Senator Sani Musa, Adedeji emphasized that the reforms are focused on improving the simplicity and efficiency of tax administration in Nigeria. He explained that the reforms are designed to streamline processes, not burden taxpayers with additional taxes.

"The goal of the tax reforms is to simplify tax administration, increase efficiency, and ensure that the system works better for Nigerians," Adedeji stated, adding that the reforms would actually reduce the taxes currently paid by Nigerians. He also assured that no government agency would be merged and no jobs would be lost during the reform process.

Adedeji explained that the tax policies introduced by President Bola Tinubu are focused on taxing prosperity rather than poverty, targeting profits and returns instead of initial investments. The FIRS Chairman also highlighted four key bills before the National Assembly aimed at legalizing the reforms: the Nigeria Tax Bill, the Nigeria Tax Administration Act (Amendment) Bill, the Nigeria Revenue Service Bill, and the Joint Revenue Board (Establishment) Bill.

He stated that these bills, when passed into law, would harmonize the country's multiple tax laws, modernize tax administration, and promote transparency in revenue collection. Adedeji further explained the reasoning behind the proposed name change of the FIRS to the Nigeria Revenue Service (NRS), noting that the current name does not fully reflect the agency's broader scope, including the administration of Value Added Tax (VAT), 85% of which is allocated to states.

Senator Sani Musa, chairman of the committee, remarked that the purpose of the session was to gain insight into the objectives of the tax reform bills, stressing the importance of constructive input from all stakeholders in shaping the government's tax agenda.