Tax reform Bill not to increase payment – FIRS

By Tom Okpe

Chairman, Federal Inland Revenue Service, FIRS, Zack Adedeji, has said the tax reform Bill recently presented to the National Assembly is not aimed at increasing tax or introducing new taxes into the nation’s tax books.

He also said the four tax reform Bill’s aim is to harmonise all tax laws, scattered in different tax laws and establishment Bills.

Adedeji said it was also not aimed at merging any Government Agency and will not lead to any loss of jobs.

The FIRS Chairman made these known at a meeting with the House Committee on Finance at the National Assembly on Wednesday, ahead of the second reading of the Bill.

He said: “We want to harmonise all the tax laws because we have tax laws scattered in different tax laws and different establishment laws passed. The implication is that the multiplicity of taxes shows that each agency that has tax law must implement it.

“No agency is superior to the other and you cannot ask one agency not to carry out the order. So, Presidential Boka Ahmed Tinubu saw that this is not good for the economy and the only way out, is to harmonise all the tax laws and have them in one place.

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“The other reason is to organise the fiscal framework in the country. As we stand today, there is no law anywhere to actually regulate or monitor Cryptocurrency. We are in a global community and there is no way we can exclude ourselves from what is happening globally.

“This is also to synergise all revenue collecting agencies. One of the things we also consider is efficiency in Government spending. Prior to the implementation of TSA, Government will have money in one bank and borrow from another because we don’t have a holistic view.

“But when TSA was implemented, it gave us a holistic view of where Government monies are and with that, you will not have money on one bank and be borrowing from another.

“We also want to complete our tax laws in order to represent the current realities that we have. Currently, we are using the tax integrity test of 1939 when there was no internet, no online shopping. In order to align ourselves with current realities, it is the wisdom of Mr President that all these Bill’s be implemented. We also want to align ourselves with international standards.”

He further stressed that the rate of tax payment will neither be increased nor, number of taxes adding that, it is the belief of Mr President that the taxes we have now, should be harmonised and should be less than two digital types of taxes. This is what has been put together in the bills that we sent to the House.

“The Nigeria Revenue Service Act repeals the FIRS act and brings the service to where it is. Today, you call us Federal Inland Revenue as if we only collect money for the Federal Government or only collect money in Nigeria.

“It was like that when the service was established, but today, one of the revenue we collect is VAT and 85 percent of this VAT goes to the states. So what we are doing is not in line with what you call us.

“Today, we collect online charges for Jumia, Google and others. As Nigeria Revenue Service, we can collect. Any revenue whether in Nigeria not outside Nigeria, we can collect it.

“The last is the Joint Revenue Board because there is the need for us to have a strong legal framework through which we can resolve amicably when you have conflict between the states and local government as far as revenue generation and sharing is concerned.

“It is the wisdom of the President that this is what we need at this time to lay a foundation for a solid economy.

“Again, if you look at these tax laws, they give different times for filing and even the penalties. But the laws before you provide a uniform template for all. There will be integrated enforcement and penalties.

“One of the reasons why this is being done is that it will stimulate our economy and will lay a foundation for the type of economy that the President envisages.”

Chairman of the House Committee on Finance, James Abiodun Faleke, APC, Lagos, said the aim of the meeting was to give members first-hand information on the necessity of the Bills, so that they can make informed contributions when they come up for second reading.