In a bid to ensure ease of doing business, transparency and efficiency in revenue collection, the Federal government has mooted plans to reduce the number of taxes from 52 to 10 and also change the Federal Inland Revenue Service (FIRS) to Nigeria Revenue Service (NRS) which will harmonise all tax collection activities of the Federal government.
This was made known by President Tinubu’s special adviser on revenue Mr. Zacch Adedeji during the virtual TOPAZ 88 lecture series titled “Revenue Challenges and Opportunities in Nigeria Today.”
Multiple taxes
Speaking during the lecture, Mr. Adedeji said the problem of multiple taxations has reduced trust and compliance among taxpayers in the country. He noted that the aim of this administration is to “let the poor breathe” as they plan to tax ‘prosperity’ and ‘fruits’ not ‘seeds.
Commenting on the FG’s plans, Mr. Adedeji said “This is why, in the coming days when the tax committee is constituted, we will ensure that we streamline our taxes from 52 to 10 because we have realised that it is very difficult to have compliance due to so many taxes”
Consolidation of tax collection agencies
He also faulted government agencies who combine regulatory duties with revenue collection which is not their designated mandate.
- In his words, “What we want to do now is to ensure that regulators focus on regulations while agencies in charge of tax collections will collect. “
- “For instance, the Nigerian Maritime Administration and Safety Agency (NIMASA) collect 3% freight duty, but it is not their duty.
- “Their duty is to secure the waterways. The collection of freights is the sole responsibility of the Nigerian Ports Authority. This is the reason we have leakages because we don’t know how much we have”
The Presidential adviser on revenue also spoke of the FG’s plan to consolidate revenue collection in one government agency- the Nigeria Revenue Service. He explained the reason behind the initiative is to avoid duplication and ensure all taxes due to the government are collected by one agency.
What you need to know
President Tinubu in his inauguration speech spoke of his administration’s commitment to “review all their complaints about multiple taxation and various anti-investment inhibitions”.
Nairametrics earlier reported President Tinubu’s establishment of the Presidential committee on fiscal policy and tax reforms and the subsequent appointment of PwC’s Africa tax leader Mr. Taiwo Oyedele as chair of the committee.
According to the Director-General of Nigeria Employers’ Consultative Association (NECA), Adeyemi-Smatt Oyerinde, businesses in Nigeria are burdened with over 50 different taxes and levies- both legal and illegal.
a great move here
All movement, no progress…lol
Awesome plan