Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has said the tax reforms being carried out by the federal government will not introduce new taxes or increase the tax rate for existing ones.
He gave the assurance during an interactive session with the Senate Committee on Finance.
“Tax reform will not introduce any tax or increase the percentage of the existing ones but it will reduce the 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 the simplicity and efficiency of tax administration in Nigeria,” Adedeji explained.
He noted that four executive bills had already been submitted to both chambers of the National Assembly to formalise the tax reform.
The bills, Adedeji said, are the Nigeria Tax Bill, Nigeria Tax Administration Act (amendment) Bill, Nigeria Revenue Service Bill, and the Joint Revenue Board (Establishment) Bill.
He noted that once passed, the bills would help harmonise the country’s multiple tax laws, driving efficiency and modernisation, adding that the legislation would simplify tax laws, create synergy among relevant agencies, and enhance transparency in revenue collection.
The FIRS boss further stated that the bills aim to align with international standards and expand Nigeria’s tax base.
Responding to a question about why the Federal Inland Revenue Service (FIRS) would be renamed the Nigeria Revenue Service (NRS) in one of the proposed bills, Adedeji explained that the current name does not fully reflect the agency’s scope of services.
Chairman of the committee, Sen. Sani Musa, stated that the purpose of the interactive session was for the FIRS to brief the committee on the objectives of the tax reform bills.