Tag: FIRS

The House of Representatives Committee on Finance has challenged the Federal Inland Revenue Services to take advantage of the construction of its 16-storey building headquarters to ensure improved revenue generation for the country.

The Committee assured the agency of the support of the parliament in ensuring early completion of its corporate headquarters for effective revenue generation.

Chairman of the Committee, James Abiodun Faleke who gave the assurance when he led other members of the committee on an oversight visit to the agency commended the management their pragmatic performance since coming into office.

Faleke said: “We decided to come to the proposed permanent site, which is a 16-storey building structure and we have seen the progress so far. And like the architecture said, the building was started in 2011 but the current management has taken it to 65 per cent completion and it will be completed in the last quarter of next year.

“We expect that when this building is completed and the tax laws are passed, it will be launched in this building. We also expect that more money will come into the government coffers.”

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Faleke promised that the committee will continue to support the service to deliver on its mandate adding that FIRS was critical in the economic development of the nation.

“For us, we will continue supporting you to do your job and we are also just doing our job. We have always supported you and we’ll continue to do so. We are satisfied with what you’re doing,” he assured.

Executive Chairman of FIRS, Zacch Adedeji commended the lawmakers for being supportive to the organisation pledging the cooperation of his management for a smooth working relationship and assured that under his leadership, the organisation will continue to deliver on its target and judiciously implement its budgets.

“Mr. Chairman, I welcome you and your honourable colleagues to the FIRS headquarters. We are happy to receive you and pledge our readiness to work with you for the development of our nation,” he said.

Chairman of the Federal Inland Revenue Service (FIRS), Zack Adedeji said yesterday that the tax reform bills recently presented to the National Assembly is not aimed at increasing tax or introducing new taxes into the nation’s tax books.

He said the reform is also not aimed at merging any government agency or with the responsibility of tax collection neither will it lead to any loss of job in all sectors of the country.

Speaking at a meeting with the House Committee on Finance ahead of the Second Reading of the bills, Adedeji said the four tax reform bills aimed to harmonise all tax laws scattered in different tax laws and establishment bills which he said has reduced the ineffective performance of tax in terms of tax collection.

He said: “We want to harmonise 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.

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“No agency is superior to the other and you cannot ask one agency not to carry out the order. So, Mr. President saw that this is not good for the economy and the only way to do that is to harmonise all the tax laws and have them in one place.”

“The other reason is to organise the fiscal framework in the country. As we stand today, there is no law anywhere to actually regulate or monitor cyrotocurrency.  We are in a global community and there is no way we can exclude ourselves from what is happening globally.  So, I be of the hills is to organise the fiscal efficiency in the fiscal framework.

“Another, this is to synergies all revenue collecting agencies. One of the things we also consider is efficiency in government spending. For example, prior to the implementation of TSA, government will have money in one bank and be borrowing from another because we don’t have the holistic view.

“But when TSA was implemented,  it gave us a holistic view of where government monies are. With that, you will not have money on one bank and be borrowing from another.

“Another principle is to improve the transparency and integrity of revenue collection and there is nothing that we will do than understanding the laws so that they will be very simple to comply with.

“We also want to complete out tax laws in other to represent the current realities that we have. Currently, we are using the tax integrity test of 1939 when there was no internet, no online shopping.  In other to align ourselves with current realities, it is the wisdom of Mr. President that all these bills be implemented. We also want to align ourselves with international standard.

“Nigeria is a destination for investment, where people will consider where will give them the best return on their investment. One of the things to consider is the fiscal framework for the destination for their investment. So, in other to align ourselves with the international standard and attract investment into Nigeria, Mr. President presented these bills.

“It is also aimed at broadening our tax laws. Mr President has said is not interested in taxing poverty and inflation.

“We will never increase either the rate or the number of taxes. In fact it is the belief if the president that the taxes we have now should be harmonised and then, we should have less than two digital types of taxes. This is what has been put together in the bills that have sent to the House.

“In terms of the structure, first is to have the Nigeria Tax act which will harminise all tax laws in the country and put them in one book.  What this will do is that all the multiplicity bof taxes will reduce because we will not have them one book.

“For example, the Education Tax Act which provide for payment of two per cent and increased to three per cent by the Finance Act, in the a police Trust Fund, you ask them. To charge one per cent of a certain amount; if you go to NASENI, they have certain percentage and you ask NUPRC to charge royalties. In all these laws, what has been an issue is compliance either from the companies or individual that want to comply.

“The second is the Nigeria Tax administration act which will harmonise the administration of all taxes which spelt out what tax should be paid, at what time should it be paid and ensure uniformity. So, people will not be moving from one place to the other seeking to comply.

“The Nigeria Revenue Service Act repeals the FIRS act and brings the service to where it is already. Today, you call us Federal Inland Revenue as if we only collect money for the federal government or only collecting money in Nigeria.

“It was like that when the service was established, but today, one of the revenue we collect is VAT and 85 per cent of this VAT goes to the states. So what we are doing is not in line with what you call us.

“Today, we collect online charges for Jumia, Google and others. As Nigeria Revenue Service, we can collect; any revenue whether in Nigeria not outside Nigeria, we can collect.

“The last is the Joint Revenue Board because there is the need for us to have a strong legal framework through which we can resolve amicably when you have conflict between the states and local government as far as revenue generation and sharing is concerned.

“It is the wisdom of the President that this is what we need at this time to lay a foundation for a solid economy.

“Again, if you look at these tax laws, they gave different times for filing and even the penalties. But the laws before you provide a uniform template for all.  There will be an integrated enforcement and penalties.

“One of the reasons why this is being done is that it will stimulate our economy and will lay a foundation for the type of economy that the President envisaged.”

Chairman of the House Committee on Finance, James Abiodun Faleke said the aim of the meeting was to give members a firsthand information on the necessity of the bills so that they can make informed contribution when the bills comes up for second reading.

The Chairman, Federal Inland Revenue Service (FIRS), Zaccheus Adedeji, yesterday dispelled fears in some quarters on the imminent introduction of new taxes through the tax reform Bills being considered by the National Assembly.

Adedeji made this clarification during an interactive session with the Senate Committee on Finance in Abuja.

He assured that the tax reform bills do not contain the introduction of new taxes or increases in already existing ones.

Adedeji said: “Tax reform will not introduce any taxes or increase the percentage of existing ones but reduce the number of taxes being paid by Nigerians.

“No agency will be merged in the process of carrying out the reforms and no job will be taken from anybody.

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“The Tax reform basically seeks to increase simplicity and efficiency of tax administration in Nigeria.”

He said existing tax policies introduced by the President Bola Tinubu’s administration are not meant to “tax poverty but prosperity, fruits and not seeds, returns and not investments.

“The four bills which are (i) Nigeria Tax Bill, ( ii) Nigeria Tax Administration Act (amendment) Bill, (iii) Nigeria Revenue Service  Bill and (iv) Joint Revenue Board (establishment) Bill; when passed into law, would among others help to harmonise the multiple tax laws in the country;

“Drive efficiency and modernisation, simplify tax laws and ensure synergy among agencies involved, increase efficiency and effectiveness in government savings, promote transparency and integrity in revenue collection, align with international standards, broaden Nigeria’s tax base etc.”

When asked to explain the proposed change in the name of FIRS to the Nigeria Revenue Service (NRS), Adedeji said the present name of the agency does not cover the scope of its services, like the Value Added Tax (VAT), 85per cent of which according to him, are remitted to States while the Federal government gets the remaining 15 per cent.

In his remarks, the Chairman of the Committee, Senator Sani Musa said the purpose of the interactive session was for the FIRS boss to update the committee on the objectives of the proposed tax reforms.

‘Tax reforms lie at the heart of government’s agenda and requires constructive inputs from all stakeholders,” he said.

He commended the FIRS boss for meeting up with the revenue targets set in the fiscal year and urged him to go beyond the target.

The Federal Inland Revenue Service (FIRS) has introduced a new Unstructured Supplementary Service Data (USSD) code, *829#, designed to enhance taxpayer satisfaction and streamline tax-related services.

The code was launched on Wednesday by FIRS Chairman Zacch Adedeji at the Revenue House in Abuja, as part of the 2024 Customer Service Week celebrations themed “Above and Beyond.”

A statement from the FIRS signed by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman said Nigeria has become the sixth African nation to adopt USSD technology for simplifying tax administration.

The service aims to provide easy, real-time access to essential tax information and services without the need for internet connectivity, further promoting accessibility across urban and rural areas.

The USSD code allows taxpayers to retrieve their Taxpayer Identification Number (TIN), verify their Tax Clearance Certificate (TCC), access information on tax types and rates, locate FIRS offices, and address general tax-related inquiries. The service is available on all mobile networks in Nigeria, offering a simplified means for citizens to manage their tax obligations.

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At the launch, Adedeji emphasized the importance of this development, stating, “This technological leap reflects our dedication to creating a tax system that is efficient, transparent, and responsive to the needs of taxpayers.” He encouraged all citizens to utilize the USSD service for ease of access to tax services.

The FIRS also unveiled its Customer Centricity Guide, a manual outlining policies, processes, and procedures aimed at placing taxpayers at the center of its operations. The guide emphasizes respect, professionalism, and efficiency, ensuring that taxpayers are treated as key partners in nation-building.

Adedeji highlighted that the guide and the USSD code represent FIRS’s commitment to service excellence, noting that both initiatives are designed to foster trust and encourage voluntary tax compliance. “The taxpayer is not just a client but a valued partner,” he said, reinforcing the importance of collaboration between FIRS and Nigerian taxpayers.

Nnenna Akajemeli, National Coordinator of Servicom, commended FIRS for its efforts to enhance taxpayer services, recognizing the launch of the USSD code and Customer Centricity Guide as significant strides in simplifying tax compliance and improving public engagement. She remarked, “These initiatives ensure that citizens and taxpayers are delighted at the quality of service you render.”

Loveth Onanuga, Director of FIRS’s Taxpayers’ Service Department, echoed the agency’s commitment to exceeding taxpayer expectations by delivering exceptional service. She noted that FIRS aims to astonish taxpayers with the quality of support provided aligned with the “Above and Beyond” theme of Customer Service Week.

Executive Chairman, Federal Inland Revenue Service, Dr. Zaach Adedeji has said that his agency is navigating the complexities of the globalized economy  to understand the evolving landscape of taxation and its implications for Nigeria’s growth and development.

He stated this on Tuesday in Lagos as the   Keynote Speaker at the  LCCI – FIRS organised Private Sector stakeholders engagement with the theme ‘’Emerging Tax Matters “, organised by the Lagos Chambers of Commerce and Industry ( LCCI).

He underscored the vital role that taxpayers play in a country’s economic development.

Some of the roles he said are instrumental in financing the infrastructure projects that are critical to the progress at all levels of government.

He said: “The Federal Inland Revenue Service (FIRS) is tasked with the collection, assessment, accounting and enforcement of various taxes, including Corporate Income Tax (CIT), Value Added Tax (VAT), Petroleum Profit Tax (PPT), Capital Gains Tax (CGT), and Education Tax (EDT), among others. These revenues are deposited into the Federation Account and are distributed monthly to the three tiers of government according to a set formula. Additionally, Value Added Tax (VAT) follows a distinct sharing ratio: 15 percent to the Federal Government, 50 percent to the States, and 35 percent to the Local Governments.

Dr. Adedeji who was represented by  Acting Director, Medium Tax Payers Department- South  Mrs Oti Olaniyi said the current administration has unveiled a new FIRS which intends to drive the customer focus service delivery based on people, technology and process as well as harmonized tax services. This reorganization she stated represents a strategic shift towards attaining a customer-centric organizational structure aiming to systematically address challenges and ensure pragmatic reforms applicable to the Service’s complex realities.

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She also stated that by streamlining operations and decentralizing key functions, the FIRS aims to address long-standing challenges and improve its responsiveness to taxpayer needs.

According to her restructuring FIRS is not just an administrative change but  a step towards creating a more agile and accountable institution that can better support Nigeria’s economic growth and development.

She further revealed the creation of three (3) operational groups from the previous GTOG – Small (Emerging Tax), Medium and Large Tax Groups to better cater for taxpayer needs according to their income threshold.

The  creation of One-Stop-Shop: Both Tax Office and Tax Audit functions within an Integrated Department, as well ensuring that matters relating to all taxes are handled in the tax office (no more VAT Coordination, Stamp Duty Office etc) to forestall harassment of taxpayers by multiple function.

She stressed that FIRS is committed to a customer-centric approach aimed at enhancing voluntary compliance and boosting revenue generation.  In addition to ensuring tax compliance benefits for  businesses and the government.

She encouraged her listeners that when businesses meet their tax obligations, it translates into increased revenue for the government, which is essential for funding public services and infrastructure development, ultimately driving economic growth and societal well-being.

“Another key area of reform involves leveraging technology to strengthen tax administration. The FIRS has developed a platform called Taxpro Max, which allows taxpayers to file returns and access various tax services online. Our suite of e-services—including e-filing, e-reporting, e-registration, and e-TCC—demonstrates our commitment to facilitating easy and efficient tax management”.

“Additionally, we have established a robust data management division to ensure accurate assessments and strategic planning, leveraging data analytics to enhance our tax administration”.

She canvassed that tax education and public awareness are vital for fostering a culture of tax compliance as taxpayers education campaigns help citizens understand their tax obligations and the benefits of tax revenue. Initiatives like our monthly Tax Thursdays and sensitization exercises in schools aim to enhance public understanding of tax.  She said in line with the crucial juncture in the nation’s  economic evolution, the tax system, a foundational element of economic policy, is undergoing significant reforms. These changes according to her are driven by the need for increased revenue, better compliance, and more equitable economic practices.

On the importance of the reforms, she said they are  to meet with emerging tax issues and also commensurate with the fiscal tax reforms being handled by the Presidential Fiscal Policy and Tax Reforms Committee. She said: “Historically, our tax revenue has not kept pace with the needs of our expanding population and infrastructure demands. Our heavy reliance on oil revenues has highlighted the need for diversification”. “Thus, modernizing our tax system to address current economic challenges is crucial.The recent changes in the tax landscape are designed to simplify the tax system, broaden the tax base, and ensure a fairer distribution of tax responsibilities”.

Olaniyi lamented that the rise of the digital economy presents a significant challenge to traditional tax frameworks and to address this, Nigeria has implemented new tax policies targeting digital platforms, including the Finance Act’s provisions on VAT for digital services.

She said among other things   the withholding Tax (WHT) was designed to provide government with regular revenue flow and serve as a means of cutting tax evasion. However, over the years as the regime expanded with more transactions, various ambiguities and complications crept in.

To address these complexities in the 2024 Regulation, is the introduction of a simplified and business friendly tax regime on advanced payment of tax on specified transaction. Specifically, the changes includes exemption of small businesses from withholding tax compliance, reduced rates for businesses with low margin, exemptions for manufacturers and producers in farming and other measures to curb evasions and minimize tax avoidance.

Tax incentives she added are crucial for encouraging investment and economic growth. Nigeria has introduced several incentives to attract foreign investment and support local industries she stated.

As we explore various tax incentives to stimulate local industries, we must emphasise the need for transparency and effectiveness in the implementation of these incentives. Evaluating their impact and ensuring they align with national development goals is critical for maximizing their benefits.

On the informal sector, she responded that it constitutes a large part of our economy and  poses unique challenges.

“Many small and micro businesses operate outside the formal tax system. To engage this sector effectively, the government is exploring simplified tax regimes and registration incentives. Business-to-Consumer, and Business-to-Government transactions”.

“In summary, the emerging tax matters in Nigeria present both challenges and opportunities. By embracing reform, leveraging technology, and ensuring transparency, we can develop a tax system that supports sustainable growth and equitable development. Our collective efforts will pave the way for a more prosperous and resilient Nigeria”, she added.