Tinubu to Reduce The Number of Taxes From 52 to 10 For Nigerians, Businesses, Rename FIRS
- The Nigerian government is moving to streamline the number of taxes in Nigeria
- Presidential aide on revenue collection, Zach Adedeji, said the government is reducing the number of taxes from 52 to 10
- He also said the federal government would rename the Federal Inland Revenue Service to Nigeria Revenue Service
The Nigerian government is mulling plans to reduce the number of taxes from 52 to 10 and also rename the Federal Inland Revenue Service (FIRS) to Nigeria Revenue Service (NRS) to harmonize all federal government tax collection activities.
The move is to ensure ease of doing business, transparency, and efficiency in revenue collection.
Source: Getty Images
Multiple taxations destroy trust among investors
President Bola Tinubbu’s special adviser on revenue, Zach Adedeji, disclose this during the virtual TOPAZ 88 lecture on revenue challenges and opportunities in Nigeria.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Adedeji said multiple taxations have lowered trust and compliance among taxpayers in Nigeria, noting that the administration aims to ‘let the poor breathe’ as they plan to tax prosperity and fruits, and not seeds.
He 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 realized that it is challenging to have compliance due to so many taxes.”
NIMASA, other regulatory agencies not empowered to collect revenue
According to reports, he criticized regulatory agencies for combining revenue generation with regulation, which is not their mandate.
“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.
“They have to secure the waterways. The collection of freights is the sole responsibility of the Nigerian Ports Authority. We have leakages because we don’t know how much we have,” Adedeji said.
Tinubu promises to review multiple taxations
The Presidential aide on revenue revealed the plan of the Nigerian government to consolidate revenue collection in one government agency, stating that the aim is to avoid duplication and ensure all taxes due to the government are collected by one agency.
During his inauguration speech on May 29, 2023, President Tinubu revealed plans to review all complaints about multiple taxation and various ant-investment inhibitions.
FIRS Rakes in N5.5 trillion in tax revenue in 6 months, exceeds expectations
Legit.ng reported that the Federal Inland Revenue Service (FIRS) collected a total tax revenue of N5.5 trillion for six-month period from January to June 2023. Legit.ng earlier reported that FIRS set a new record after collecting over N10 trillion in revenue in 2022.
It was the first time the revenue agency crossed the N10 trillion mark in tax revenue collection.
The agency's realisation of this feat is coming despite the fact that Nigerians have been plagued by several economic hardships in the course of the six months including naira scarcity, inflation, fuel subsidy removal and high petrol prices.
Source: Legit.ng
