The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has reassured Nigerians that proposed tax reform laws will not lead to the introduction of new taxes or an increase in existing ones.
During an interactive session with the Senate Committee on Finance in Abuja on Tuesday, Adedeji clarified that the reforms are aimed at simplifying and improving tax administration in Nigeria. He emphasized that no new taxes would be introduced, nor would the rates of current taxes be raised.
“Tax reform will not bring in new taxes or increase the percentage of existing ones. Instead, it will reduce the number of taxes Nigerians currently pay,” he said.
Adedeji also confirmed that no government agency would be merged and no jobs would be lost as a result of the reforms.
He highlighted the primary goal of the tax reform as increasing the simplicity and efficiency of tax processes.
He revealed that four executive bills had been submitted to the National Assembly to legalize the reforms. These bills include the Nigeria Tax Bill, Nigeria Tax Administration Act (amendment) bill, Nigeria Revenue Service bill, and the Joint Revenue Board (Establishment) bill.
According to Adedeji, these bills will help streamline and harmonize the country’s numerous tax laws, promote efficiency, and ensure that Nigeria’s tax system aligns with international standards.
The reforms are also expected to enhance government savings, promote transparency in revenue collection, and broaden the country’s tax base.
When asked about the proposed name change of the FIRS to the Nigeria Revenue Service (NRS), Adedeji explained that the current name does not reflect the full scope of the agency’s responsibilities. He noted that, for example, 85% of Value Added Tax (VAT) is remitted to the states, while the federal government retains 15%.
Senator Sani Musa, Chairman of the Senate Committee on Finance, commended the FIRS for meeting its revenue targets for the fiscal year.
He encouraged the agency to continue exceeding expectations, while praising the clarity of the proposed tax reforms.