Writing By BASHIR M; Editing By Yusuf Zubairu
The Senate has assured Nigerians of adequate legislation to reduce multiple taxation.
The Chairman of the Senate Committee on Finance, Senator Sani Musa, gave this assurance during an interactive session with the Executive Chairman of the Federal Inland Revenue Service (FIRS) on four executive bills submitted by President Bola Ahmad Tinubu, aimed at reviewing tax laws in Nigeria.
Welcoming the guest, Senator Sani Musa said such interactive session was very crucial for the legislators to have a clear understanding of the bills and what the executive want to achieve.
Sani Musa explained that as policymakers, they recognize the importance of a transparent, efficient, and inclusive tax system that supports national development without overburdening citizens or businesses.
He added that the committee was looking forward to hearing from the executive chairman, the progress, challenges, and future plans from the (FIRS) in implementing tax system
The lawmaker argued that this would give the lawmakers the opportunity to align their legislative efforts to the tax reform bills, urging his colleagues to have constructive observation and input for the benefit of Nigerians towards sustainable economic transformations.
Senator Sani Musa commended the FIRS boss for meeting up with revenue targets set in the fiscal year but also urged him to go beyond the target .
Similarly, members of the committee, such as Senators Seriake Dickson (PDP, Bayelsa West), Osita Izunaso (APC, Imo West), and Ahmed Wadada (SDP, Nasarawa West), commended the FIRS boss for the agency’s increased revenue generation, particularly in non-oil revenue.
However, in his response, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, allayed the fears of Senators and other Nigerians about the possible introduction of new taxes through the proposed tax reform bills by the President.
The Executive Chairman of the FIRS assured Nigerians that the tax reform laws, would not entail introduction of new taxes or increase of already existing ones .
” Tax reform will not introduce any taxes or increase percentage of existing ones but reduce 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 .”
Mr Adedeji said the Tax reform basically seeks to increase simplicity and efficiency of tax administration in Nigeria.
He further reassured Nigerians that the existing tax policies introduced by President Bola Tinubu were not intended to tax poverty but prosperity, targeting fruits and not seeds, returns and not investments.
Mr. Zacch Adedeji explained that one of the mandates of the committee set up by the President was to harmonize taxes and streamline tax reform policies.
He cited the example of stamp duty, which has been modernized and simplified, with laws harmonized to increase efficiency and effectiveness.
He added that the reform would promote transparency in revenue collection and align with national standards, similar to practices in countries like South Africa and others that Nigeria seeks to emulate.
“It will drive efficiency and modernization, simplify tax laws, ensure synergy among agencies involved, increase efficiency and effectiveness in government savings, promote transparency and integrity in revenue collection, align with international standards, and broaden Nigeria’s tax base, among other benefits.”
When asked why the FIRS, as mentioned in one of the bills, would be renamed the Nigeria Revenue Service (NRS), the Executive Chairman of the agency explained that the current name does not reflect the full scope of the agency’s responsibilities, such as the Value Added Tax (VAT), 85% of which, according to him, is remitted to the states, while the federal government receives the remaining 15%.
The affected Executive bills have already been forwarded to both chambers of the National Assembly for legalizing the reforms, which include (i) the Nigeria Tax Bill, (ii) the Nigeria Tax Administration Act (Amendment) Bill, (iii) the Nigeria Revenue Service Bill, and (iv) the Joint Revenue Board (Establishment) Bill. When passed into law, these bills would, among other things, help harmonize the multiple tax laws in the country.
Cov./ Bashir M
