FIRS Chairman Assures No New Taxes in Ongoing Tax Reforms, Focus on Efficiency and Simplification

The Federal Inland Revenue Service (FIRS) has confirmed that it is not considering introducing new taxes, addressing concerns about potential tax reforms leading to new levies. This reassurance was provided by Zacch Adedeji, the Chairman of FIRS, during an interactive meeting with the Senate Committee on Finance at the National Assembly in Abuja on Tuesday.

Responding to inquiries from Senator Sani Musa's committee, Adedeji emphasized that the ongoing tax reforms would not involve raising existing taxes or creating new tax regimes. He reassured that Nigerians would not face higher tax burdens and clarified that no government agencies would be merged or jobs eliminated during the reform process.

"The tax reform basically seeks to increase the simplicity and efficiency of tax administration in Nigeria," Adedeji stated. He further explained that the current tax laws introduced by President Bola Tinubu aim to encourage productivity and investment, rewarding success rather than penalizing it.

Regarding the four executive bills already submitted to the National Assembly, Adedeji outlined their purpose: "The four bills—(i) Nigeria Tax Bill, (ii) Nigeria Tax Administration Act (Amendment) Bill, (iii) Nigeria Revenue Service Bill, and (iv) Joint Revenue Board (Establishment) Bill—when passed into law, will harmonize multiple tax laws, drive efficiency and modernization, simplify tax laws, promote transparency and integrity in revenue collection, align with international standards, and broaden Nigeria’s tax base."

Adedeji also addressed the proposed change in the agency's name to the Nigeria Revenue Service (NRS), explaining that the current name does not fully capture its scope, especially regarding Value Added Tax (VAT), where 85% is remitted to states and 15% to the federal government.

Senator Sani Musa, chairman of the committee, noted that the interactive session aimed to provide an update on the tax reform measures and involve all stakeholders in shaping the reforms. "Tax reforms lie at the heart of the government's agenda and require constructive inputs from all stakeholders," he said.