The National Tax Policy Review Committee has advised the federal government to the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) to improve revenue generation and accountability.
The recommendation, according to Premium Times, was contained in the draft tax policy presented at the committee’s second stakeholders engagement on Tuesday in Abuja.
Here is the reason provided for the need to merge the agencies;
Taiwo Oyedele, who is a member of the committee, and the West Africa Tax Leader at PricewaterhouseCoopers, explained why this was necessary.
“Part of our recommendations was for FIRS and Customs to be merged,” Mr. Oyedele said. “But, not just the two agencies. All revenue generating agencies at the federal level should be merged into one.”
“All the structures in the FIRS were replicated in Customs, resulting in cost of collection going up. It also makes it easier for tax evaders to manipulate the system and get away with it. No one can provide information for Customs and FIRS.”
He said having only one revenue agency would ensure all information about a taxpayer were known when he or she has paid their tax, while ensuring leakages in the system were reduced.
Read more on Premium Times: Tax review committee wants Nigerian govt. Customs, FIRS merged
