The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has reassured Nigerians that the recently proposed tax reforms will not lead to increased taxes or job losses. During a presentation to the Senate Committee on Finance, Adedeji emphasized that these new bills are designed to enhance efficiency and transparency in tax collection, not to burden citizens or businesses.
President Bola Tinubu had presented four executive tax reform bills to the National Assembly. These bills include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill 2024, and the Joint Revenue Board (Establishment) Bill. Notably, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) to reflect its federal role as a revenue collection agency.
Adedeji clarified that the aim of these reforms is to harmonize and codify all taxes into a single, simplified document, making the tax process more efficient and transparent. He added that there is no intent to raise taxes but rather to broaden the tax base by ensuring more people and businesses comply with existing laws.
The reforms are also meant to align Nigeria's tax system with international standards, Adedeji stated, assuring that the government’s goal is to streamline tax collection and increase synergy between federal and state revenue systems. The Joint Revenue Board, a key part of the reform, is expected to foster better cooperation between federal and state tax agencies, improving overall efficiency.
The Chairman of the Senate Committee on Finance, Senator Sani Musa, explained that the session with FIRS was necessary for lawmakers to familiarize themselves with the proposed changes. Senator Osita Izunaso further suggested that all the bills, including those related to the Petroleum Industry Act, should be consolidated into a single comprehensive document for better understanding and implementation.
Adedeji's statements aimed to dispel fears surrounding the reforms. He assured that the government remains focused on expanding the tax base rather than increasing the tax burden on individuals and businesses, while also promoting greater efficiency in revenue collection.