The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has assured Nigerians that the upcoming tax reforms will not result in the introduction of new taxes or an increase in existing ones.
This assurance was given during a meeting with the Senate Committee on Finance held in Abuja on Tuesday.
Adedeji emphasized that the goal of the proposed reforms is to streamline Nigeria’s tax system without adding more burdens to the people. “The tax reform will not introduce any new taxes or raise existing rates; instead, it will reduce the number of taxes Nigerians have to pay,” he affirmed.
He also clarified that there would be no mergers of government agencies, nor would any jobs be lost as a result of the reforms.
The primary objective of the reform, according to Adedeji, is to improve the simplicity and effectiveness of tax administration across the country.
He added that the current tax policies of President Bola Tinubu’s administration are designed to promote prosperity, prioritizing returns over the taxation of essential items.
In his address, Adedeji outlined the four key legislative proposals submitted to the National Assembly: the Nigeria Tax Bill, the Nigeria Tax Administration Act (Amendment) Bill, the Nigeria Revenue Service Bill, and the Joint Revenue Board (Establishment) Bill.
These bills, he explained, are intended to harmonize various tax laws, foster collaboration among relevant agencies, and streamline tax administration.
Responding to questions about the proposed name change from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS), Adedeji highlighted that the current name does not accurately represent the agency’s broad responsibilities.
He pointed out that in the case of Value Added Tax (VAT), for instance, 85% of the revenue is directed to state governments, while only 15% is retained by the federal government.
Senator Sani Musa, the Chairman of the Senate Committee on Finance, emphasized the importance of the tax reform bills to the government’s overall agenda.
He called for constructive feedback from all stakeholders and praised Adedeji for his efforts in achieving the revenue targets for the fiscal year. Musa also encouraged him to surpass these targets.
Other members of the Senate Committee, including Senators Seriake Dickson, Osita Isunazo, and Ahmed Wadada, lauded the FIRS for its growing revenue generation, particularly in the non-oil sector.
