The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has assured Nigerians that the proposed tax reform bills will not introduce new taxes or increase existing tax rates.
During an interaction with members of the Senate Committee on Finance at the National Assembly, Adedeji addressed concerns over potential new taxes that could arise from the proposed tax reform laws.
President Bola Tinubu recently submitted four executive bills to the National Assembly aimed at implementing substantial tax reforms. One significant proposal involves renaming the Federal Inland Revenue Service to the Nigeria Revenue Service.
Adedeji emphasized, “The tax reform laws will not introduce any taxes or increase the percentage of existing ones; instead, they aim to reduce the overall tax burden on Nigerians.” He also clarified that no agencies would be merged, and no jobs would be lost during the reform process. The focus is on increasing the simplicity and efficiency of tax administration in Nigeria.
He further stated that the current tax policies introduced by President Tinubu are designed not to impoverish citizens but to foster national prosperity. Adedeji discussed the four proposed bills: the Nigeria Tax Bill, Nigeria Tax Administration Act (Amendment) Bill, Nigeria Revenue Service Bill, and the Joint Revenue Board (Establishment) Bill. Upon passing these bills into law, they would aim to harmonize the myriad of tax laws in Nigeria, enhance efficiency, modernize tax procedures, and promote transparency in revenue collection.
Addressing the name change from FIRS to Nigeria Revenue Service, Adedeji explained that the current designation does not fully represent the agency’s broad range of services, especially concerning the distribution of Value Added Tax.
Senator Sani Musa, Chairman of the Senate Committee on Finance, highlighted the session’s goal of gaining insight into the objectives of the tax reform bills. He reiterated that tax reforms are central to government initiatives and require input from all stakeholders. Musa commended Adedeji for achieving the revenue targets set for the fiscal year and encouraged him to strive for even higher benchmarks. Other committee members also praised the FIRS for its improved revenue generation, particularly in the non-oil sector.
