The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has allayed the fears of many Nigerians regarding a possible new tax regime in light of proposed tax reforms.
Speaking during an interactive session with the Senate Committee on Finance in Abuja, he said that the reform legislation would not introduce new taxes or raise existing rates.
Adedeji stated, “The tax reform will not add any new taxes or increase the rates of current ones; instead, it aims to reduce the overall number of taxes that Nigerians pay.”
He further clarified that no agencies would be merged as part of this process, ensuring that no jobs would be lost.
The primary goal of the tax reform, according to Adedeji, is to enhance the simplicity and efficiency of tax administration in Nigeria.
He assured that the existing tax policies initiated by President Bola Tinubu focus on taxing prosperity rather than poverty, stressing returns on investments rather than the investments themselves.
Regarding the executive bills submitted to the National Assembly, Adedeji outlined four key proposals: the Nigeria Tax Bill, the Nigeria Tax Administration Act (Amendment) Bill, the Nigeria Revenue Service Bill, and the Joint Revenue Board (Establishment) Bill.
He noted that, if passed, these bills would streamline multiple tax laws, modernise tax administration, promote efficiency, and align with international standards, all while expanding Nigeria’s tax base.
When questioned about the proposed name change from FIRS to Nigeria Revenue Service (NRS), Adedeji explained that the current title does not accurately reflect the agency’s comprehensive services, particularly in regard to Value Added Tax (VAT), where 85% of collections are allocated to states and only 15% to the federal government.
Senator Sani Musa, Chairman of the Finance Committee, highlighted the importance of the session for gaining insights into the aims of the tax reform bills.
He acknowledged that tax reforms are central to the government’s agenda and require input from various stakeholders.
He praised Adedeji for meeting revenue targets for the fiscal year while encouraging him to exceed those goals.
Other committee members, including Senators Seriake Dickson, Osita Isunazo, and Ahmed Wadada, also commended the FIRS for its efforts, particularly in boosting non-oil revenue generation.
