The Federal government has proposed plans to reduce the number of taxes from 52 to 10 and change the Federal Inland Revenue Service (FIRS) to Nigeria Revenue Service (NRS), which will harmonise all tax collection activities of the Federal government.
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These plans are intended to ensure ease of doing business, transparency, and efficiency in revenue collection.
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.”
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”
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.
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