Tax Reforms: FIRS allays fears, says no introduction of new taxes

BY TUNDE OPALANA

Federal Government tax reformation proposals will not lead to job loss or infect more pains on Nigerians.

Chairman of Federal Inland Revenue Service ( FIRS ), Zacch Adedeji, allayed the fears of Nigerians on possible introduction of new taxes through proposed tax reform laws .

He assured Nigerians , that the tax reform laws , would not entail introduction of new taxes or increase of already existing ones .

Adedeji spoke at an interactive session with members of the Senate Committee on Finance at the National Assembly in Abuja on Tuesday.

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He told the lawmakers that “tax reform will not introduce any taxes or increase percentage of existing ones but reduce number of taxes being paid by Nigerians .

” No agency will be merged in the process of carrying out the reform and no job will be taken from anybody .

” The Tax reform basically seeks to increase simplicity and efficiency of tax administration in Nigeria”.

The FIRS chairman stated further that the existing tax policies introduced by President Bola Tinubu are not meant to tax poverty but prosperity , fruits and not seeds , returns and not investments .

On the Executive bills already forwarded to both chambers of the National Assembly for legalising the reform, the FIRS boss , said ” the four bills which are (i) Nigeria Tax Bill , ( ii) Nigeria Tax Administration Act ( amendment) bill, ( iii) Nigeria Revenue Service Bill and (iv) Joint Revenue Board ( establishment ) bill ; when passed into law , would among others ; help to harmonize the multiple tax laws in the country.

” Drive efficiency and modernization , simplify tax laws and ensure synergy among agencies involved, increase efficiency and effectiveness in government savings, promote transparency and integrity in revenue collection , align with international standards, broaden Nigeria’s tax base etc “.

Giving explanation on why FIRS as contained in one of the bills , would be changed to Nigeria Revenue Service ( NRS), he said the present name of the agency does not cover the scope of its services , like the Value Added Tax ( VAT) , 85% of which according to him, are remitted to States while the Federal government gets the remaining 15%..

In his remarks , the Chairman of the Committee, Senator Sani Musa ( APC Niger East ) , said the purpose of the interactive session was to be updated by the FIRS boss on what and what the tax reform bills are aiming at .

” Tax reforms lie at the heart of government agenda and requires constructive inputs from all stakeholders “, he said .

He commended the FIRS boss for meeting up with revenue targets set in the fiscal year but also urged him , to go beyond the target .

Many members of the committee like Senators Seriake Dickson ( PDP Bayelsa West) , Osita Isunazo ( APC Imo West) , Ahmed Wadada ( SDP Nasarawa West ) , also commended the FIRS boss on increased revenue generation by the agency , particularly non – oil revenue .