The Federal Government at the weekend unveiled plans to reduce the number of federally collectable taxes from 52 to 10 and also change the Federal Inland Revenue Service (FIRS) to Nigeria Revenue Service (NRS) as part of its renewed moves to harmonise tax collection activities and improve the efficiency of the fiscal system.
President Tinubu’s Special Adviser on Revenue, Mr. Zacch Adedeji, gave this hint during the virtual TOPAZ 88 lecture series titled ‘Revenue Challenges and Opportunities in Nigeria Today’.
Adedeji said the problem of multiple taxation had reduced taxpayers’ compliance level, stressing that the aim of this administration is to “let the poor breathe” as it plans to tax ‘prosperity’ and ‘fruits’ not ‘seeds’.
The President’s aide explained that in the coming days when the tax committee is inaugurated, the government will ensure that it streamlined the taxes from 52 to 10 since it realized that it was difficult to have compliance due to the current situation in which taxpayers are contending with multiple taxes.
On tax collections by some agencies, Adedeji faulted some government agencies which combine regulatory duties with revenue collection contrary to their statutory mandates.
He clarified: “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”, he added.
Similarly, he also spoke of the government’s plan to consolidate revenue collection in the FIRS to avoid duplication of efforts and ensure all taxes due to the government are administered by the revenue service.
It would be recalled that President Tinubu in his inauguration speech on May 29 this year spoke of the administration’s commitment to review all complaints about multiple taxation and various anti-investment inhibitions.
Already, in furtherance of the fiscal step, he has constituted a Presidential Committee on Fiscal Policy and Tax Reforms with Mr. Taiwo Oyedele serving as chairman of the committee.
