FIRS Chairman Clarifies Tax Reform Bills Are Not Meant to Increase Taxes

Zack Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), has clarified that the recent tax reform bills presented to the National Assembly are not intended to raise taxes or introduce new ones into the nation’s tax system. Adedeji addressed these concerns during a meeting with the House Committee on Finance, ahead of the bills’ Second Reading.

Adedeji emphasized that the reform does not involve merging any government agencies responsible for tax collection, nor will it result in job losses across any sectors of the country. The focus, he explained, is solely on streamlining and harmonizing the nation’s tax laws.

The FIRS Chairman elaborated that the four tax reform bills are designed to consolidate various tax laws that currently exist in separate regulations and establishment bills. He pointed out that the fragmentation of these laws has hindered effective tax collection. By harmonizing the laws, the FIRS aims to reduce inefficiencies and the perceived multiplicity of taxes, which have been a concern for many.

He stated: “We want to harmonize all the tax laws because we have tax laws scattered in different tax laws and different establishment laws passed. The implications of that is the multiplicity of taxes that people talk about because each agency that has tax law must implement that tax law.”

The initiative seeks to create a more efficient and coherent tax system that simplifies the process for both taxpayers and government agencies, ensuring that tax collection is more effective without imposing additional burdens. Adedeji’s remarks are aimed at reassuring stakeholders that the reform is about improving the existing framework rather than introducing new taxes or regulations.

The meeting with the House Committee on Finance marks an important step in the legislative process, as the National Assembly reviews the bills to facilitate smoother tax administration and enhance revenue collection.