Fed Govt To Stop Multiple Revenue Agencies
Following persistent outcry of the Nigerian Organised Private Sector against multiple taxation from the three tiers of government, has hinted of an impending plan to shrink the number of revenue collection agencies in a bid to boost ease of doing business and reduce tax leakages in the economy.
This is even as it noted that the Federal Inland Revenue Service (FIRS) would be renamed as Nigeria Revenue Service (NRS) as it seeks to harmonise all tax collection activities of the government.
The Special Adviser to President on Revenue matters, Zacch Adedeji, disclosed this during a 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 the Tinubu-led administration was to “let the poor breathe” as they plan to tax ‘prosperity’ and ‘fruits’ not ‘seeds’.
Faulting government agencies that combine regulatory duties with revenue collection, Adedeji noted that the government plans to ensure regulators focus on regulations. “What we want to do now is to ensure that regulators focus on regulations while agencies in charge of tax collections will collect the revenues. For instance, the Nigerian Maritime Administration and Safety Agency (NIMASA) collect 3 per cent 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 explained.
Commenting on the planned Federal Government reform, the Presidential aide said that a tax committee will be constituted in the coming days to ensure it streamlines taxes from 52 to 10.
According to him, government have realised that it is very difficult to have compliance with so many taxes.
Adedeji also spoke of the Federal Government’s plan to consolidate revenue collection in one government agency- the Nigeria Revenue Service, stressing that the reason behind the initiative was to avoid duplication and ensure all taxes due to the government are collected by one agency.
President Tinubu in his inauguration speech spoke of his administration’s commitment to “review all their complaints about multiple taxation and various anti-investment inhibitions”.
