The proposed tax reform by the FIRS Chairman, Dr. Zacch Adedeji, provides reassuring assurances to Nigerians about the introduction of new taxes or the increase of existing ones. Speaking at an interactive session in Abuja with Senator Sani Musa, APC, Niger East Region and Chairman, Senate Committee on Finance, Adedeji addressed concerns over the tax reforms, saying that “the tax reform will not introduce new taxes or increase the percentages of existing ones; rather, it is aimed at reducing the number of taxes paid by Nigerians.” He noted that the current tax policies introduced by President Bola Tinubu are designed to tax prosperity rather than poverty, with emphasis on returns rather than investments. “No agency will be merged in the process of implementing the reform, and no job will be lost. The tax reform is primarily aimed at improving the simplicity and efficiency of tax administration in Nigeria,” he added.
Adedeji also discussed the executive bills submitted to both houses of the National Assembly to legalize the reforms. The four bills include:
– Nigeria Taxation Bill
– Nigeria Revenue Authority Amendment Bill
– Nigeria Revenue Bill
– Joint Board of Revenue Act
He noted that, when passed into law, these bills would help harmonize the multiple tax laws in the country, promote efficiency and modernization, simplify tax laws, ensure synergy among relevant agencies, increase efficiency in government economies, promote transparency in revenue collection, align with international standards, and broaden Nigeria’s tax base.
Asked about the proposed change of FIRS to Nigeria Revenue Service (NRS) in one of the bills, Adedeji explained that the current name does not cover the full range of services of the agency, especially with regard to Value Added Tax, 85 per cent of which is remitted to the states, while the Federal Government retains only 15 per cent.
Senator Sani Musa, Chairman of the Committee, noted that the purpose of the interactive session was to receive an update from FIRS on the objectives of the tax reform bills. He said, “Tax reforms are at the heart of the government’s agenda and require constructive input from all stakeholders.” Musa commended Adedeji for achieving the revenue targets set for the financial year and encouraged him to surpass them.
Other members of the committee, including Senators Seriake Dickson (PDP, Bayelsa West), Osita Isunazo (APC, Imo West) and Ahmed Wadada (SDP, Nasarawa West), also commended the FIRS Chairman for the increase in revenue generated by the agency, especially from non-oil sectors.