Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji, reassured Nigerians on Tuesday that the proposed tax reform laws will not introduce new taxes or increase existing ones. He made this statement during an appearance before the Senate Committee on Finance, aimed at discussing the FIRS’s plans for implementing tax reforms.
Adedeji emphasized that the reforms focus on simplifying and improving the efficiency of tax administration while addressing the issue of multiple taxes. He clarified that the objective is not to merge any agencies but to enhance coordination among them.
Despite his assurances, some lawmakers expressed concerns about the proposed bills. Adedeji pointed out that the agency’s current name does not fully encompass its services, citing that 85% of Value Added Tax (VAT) revenue is allocated to the states, with only 15% going to the Federal Government.
He highlighted that the reforms aim to modernize tax laws, ensure better collaboration among relevant agencies, enhance government efficiency and savings, and promote transparency and integrity in revenue collection. Additionally, the reforms seek to broaden Nigeria’s tax base.
The Senate plans to hold another meeting with the FIRS before a scheduled public hearing to further discuss the reforms.
