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No new taxes, FIRS allays fears over reforms  

By John Akubo, Abuja
16 October 2024   |   3:56 am
Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has allayed the fears of many Nigerians regarding a possible new tax regime in the light of proposed tax reforms.  
FIRS chairman, Zacchaeus Adedeji

99% of Nigeria’s wealthiest evade tax, says Oxfam

Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has allayed the fears of many Nigerians regarding a possible new tax regime in the light of proposed tax reforms.  

 
Meanwhile, Oxfam Nigeria said 99 per cent of the country’s wealthiest citizens evade taxes, while millions of Nigerians struggle to afford their next meal.
 
Speaking during an interactive session with the Senate Committee on Finance in Abuja, he emphasised that the reform legislation would not introduce new taxes or raise existing rates.
 
Adedeji stated: “The tax reform will not add any new tax or increase the rates of current ones; instead, it aims to reduce the overall number of taxes Nigerians pay.”  He further clarified that no agency would be merged as part of this process, ensuring that no job was lost.
 
The primary goal of the tax reform, according to Adedeji, is to enhance the simplicity and efficiency of tax administration in Nigeria. He assured that the existing tax policies initiated by President Bola Tinubu focused on taxing prosperity rather than poverty, emphasising return on investments rather than the investments themselves.
 
Regarding the executive bills submitted to the National Assembly, Adedeji outlined four key proposals: Nigeria Tax Bill, Nigeria Tax Administration Act (Amendment) Bill, Nigeria Revenue Service Bill, and Joint Revenue Board (Establishment) Bill. 
 
He noted that, if passed, the bills would streamline multiple tax laws, modernise tax administration, promote efficiency and align with international standards, all while expanding the country’s tax base.
 
When questioned about the proposed name change from FIRS to Nigeria Revenue Service (NRS), Adedeji explained that the present title does not accurately reflect the agency’s comprehensive services, particularly as regards Value Added Tax (VAT), where 85 per cent of collections were allocated to states and only 15 per cent to the Federal Government.
 
Chairman, Senate Committee on Finance, Sani Musa, highlighted the importance of the session for gaining insights into the aims of the tax reform bills. He acknowledged that tax reform was central to the government’s agenda and required input from various stakeholders. He praised Adedeji for meeting revenue targets for the fiscal year while encouraging him to exceed those goals.

In its reports, yesterday, Oxfam said the country was facing a severe economic crisis, with a staggering wealth gap between the rich and the poor. The non-profit organisation spotlighted the deepening inequality crisis in Nigeria in the reports entitled ‘Income and Wealth Inequality in Nigeria: Trends and Drivers,’ and ‘Taxing the Rich Fair Tax Monitor’.
 
The reports, covering 10 years, were conducted by Oxfam in Nigeria, the Tax Justice Network Africa, and the Civil Society Legislative Advocacy Centre (CISLAC).
 
According to the report, the benefits of economic growth have largely been concentrated in the hands of a few elite, leaving millions of Nigerians trapped in poverty. 
 
Oxfam said, “Only 40 of the wealthiest Nigerians were found to be compliant tax-payers, according to FIRS and John Bean Technologies Corporation (JBT). This represents a compliance rate of just 0.035 per cent, meaning that over 99 per cent of Nigeria’s wealthiest citizens evade taxes.
 
“Nigeria ranks among the countries with the highest levels of income inequality in Sub-Saharan Africa, with a small fraction of the population controlling majority of the nation’s wealth.”

 

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